Court approves sale of Alvarion to Valley Telecom

|About: Alvarion Ltd. (ALVR)|By:, SA News Editor

The court supervising Alvarion's (ALVR +1%) receivership has approved the sale of the company to Valley Telecom for a minimum of $10.4M (NIS38M). Alvarion's Receiver previously estimated that the company has $23M in debt.

A creditors plan is to be submitted no later than Oct. 2. If approved by Jan. 30, Valley Telecom will pay an additional $1.7M (NIS6.25M), and the Receiver will be issued shares representing 15% of outstanding shares post settlement.

Valley Telecom's previous revised minimum offer was $5.7M (NIS20.75M), excluding an additional amount from the sale of Alvarion's assets, inventory, and accounts receivable.

Assuming the equity structure of the previous offer, Valley Telecom will receive newly-issued shares representing 75% of shares outstanding. Existing shareholders will be diluted to 10%.