Alvarion (in Receivership) Requests Court to Approve Sale of Certain Assets and Controlling Interest of the Company
Court Grants Motion to Extend Company's Operating Plan Until August 30, 2013
ROSH HAYAIN, Israel, Aug 25, 2013 (GLOBE NEWSWIRE via COMTEX) -- Alvarion Ltd. (in Receivership) ALVR -7.95% , a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, announced today that Mr. Yoav Kfir, the court-appointed Receiver, submitted a motion to the District Court of Tel Aviv - Yaffo requesting the Court to approve the sale of the Company and certain assets to Valley Telecom Ltd.
Valley Telecom offered to buy the Company's assets and activity, excluding its patents, for an immediate payment of $1.5 million, plus milestone payments of a minimum of $1.8 million payable within 12 months. Additional payments, above the guaranteed $1.8 million, will be received, subject to the sale by Valley Telecom of the Company's existing inventory and the collection of accounts receivables. The court-appointed Receiver expects the value of these assets, and consequently the milestone payments to be received from Valley Telecom, to be higher than the minimum agreed payment of $1.8 million.
Separately, Valley Telecom offered to pay $0.5 million for newly-issued shares representing 75% of the Company's outstanding ordinary shares. Under the terms of the offer, the court-appointed Receiver will receive newly-issued shares representing 15% of the Company's outstanding ordinary shares, while the Company's existing ordinary shares (total of approximately 9.3 million shares) will be diluted to represent 10% of the Company's outstanding ordinary shares.
Of the four offers submitted during the bidding process, the court-appointed Receiver believes that the offer made by Valley Telecom is the superior one and is therefore asking the Court to approve it, or alternatively schedule an emergency hearing on the matter, to be held by August 29, 2013.
In addition, the court-appointed Receiver will continue his efforts to separately sell the Company's patents. To date, an offer has already been received from Wi-LAN Inc. to acquire the Company's patents for approximately $0.6 million.
The court-appointed Receiver estimates that these offers will enable the repayment of approximately 50% of the Company's debt that, based on information received by the court-appointed Receiver from the Company, amounts to a total of $23 million.
Separately, the Court granted the court-appointed Receiver's motion submitted on August 22, 2013, to extend the Company's operating plan until August 30, 2013, to allow the continued business operation of the Company.
