Valley Telecom to buy Alvarion for $5.8 Million
1 September, 2013
Alvarion provides optimized wireless broadband solutions addressing the connectivity. The District Court of Tel Aviv was requested to approve the proposal
The court-appointed Receiver of Alvarion submitted an urgent motion to the District Court of Tel Aviv – Yaffo requesting the Court to approve a revised proposal from Valley Telecom Ltd. to acquire the Company and its assets.
Following the motion submitted by the Receiver on August 25, 2013, requesting the Court to approve the sale of certain assets and a controlling interest of the Company to Valley Telecom, the Receiver received revised proposals from certain bidders and consequently conducted another round of negotiations with these bidders for the Company and its assets. As a result of these negotiations, Valley Telecom submitted a revised proposal to pay a minimum of NIS 20.75 million (approximately $5.8 million) for all of the Company’s assets and, should a creditors’ settlement be approved, at least 75% of the Company’s outstanding ordinary shares, as well as additional contingent payments.
In particular, Valley Telecom will make the following payments:
- NIS 12 million payable in two installments by September 30, 2013.
- A minimum of NIS 6.25 million payable in four installments between November 30, 2013 and May 30, 2014. .
- NIS 2.5 million for the Company’s patents payable at the end of 2013. In the event the patents are further sold in the the next two yearsthe Receiver shall be entitled to 50% of the net proceeds of such sale.
- Additional amounts derived from the realization of Company’s assets, inventory and accounts receivables in the two-year period commencing from the Court’s approval. In the event a creditors’ settlement is not approved, the NIS 6.25 million referred to above shall be credited against this payment.
In addition, under the terms of this proposal, Valley Telecom will assume the management and financing of the Company’s operations commencing on September 15, 2013. In its motion, the Receiver is asking the Court to approve this new proposal, or alternatively schedule an immediate hearing on the matter for the coming days. Execution of an agreement in respect of this proposal is subject to certain conditions, including, but not limited to, the Court’s approval and regulatory approvals.
Alvarion Ltd. (in Receivership) (NASDAQ:ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (www.alvarion.com)