Alvarion (ALVR) issues a correction to an earlier PR. A Tel Aviv court has approved a NIS12.2M payment to secured creditor Silicon Valley Bank.
The court will hold a hearing on Dec. 2 to consider the remaining aspects of the creditors' plan, which includes NIS6.25M (previously reported as NIS12.2M) in payments to creditors from the proceeds of asset sales and issuance of new shares representing 15% of outstanding stock.
Previous: Tel Aviv court approves first parts of Alvarion creditors' plan
The District Court of Tel Aviv has approved payments to secured lender Silicon Valley Bank and advance payments to Alvarion's (ALVR) employees at a preliminary hearing regarding the company's creditors' plan.
The creditors' plan of settlement, under which creditors would receive NIS 12.2M from asset sales and 15% of newly-issued share capital, will be discussed at a hearing on Dec. 2. The plan is contingent on Alvarion's continued Nasdaq and Tel Aviv listings.
Alvarion (ALVR) provides an update on its receivership proceedings, stating that its receiver, Yoav Kfir, has requested an extension from the District Court of Tel Aviv to submit the company's creditors plan and settlement by Oct. 16.
Shares of Alvarion (ALVR +27.2%) continue to run after climbing 8% yesterday on the back of speculation that the company's receiver and Valley Telecom owner Jorge Pinievsky will be successful at an Oct. 3 appeals hearing regarding the Nasdaq's decision to delist shares of the company, Globes reports.
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%.
Shares of Alvarion (ALVR) jump 28% pre-market after the court supervising its receivership approved two motions over the weekend. The first allows Alvarion to continue its appeal to Nasdaq for continued listing of its shares. The second permits continued operations through Sept. 15 in order to facilitate Valley Telecom's assumption of management and financing (subject to the court's approval of Valley's bid).
Previous: Alvarion spikes PM following improved offer from Valley Telecom
Alvarion shares (ALVR) are up 42.6% PM after the company's Receiver submitted an improved offer from Valley Telecom to the court. The bid follows a new round of negotiations with bidding parties.
The new proposal represents a total minimum offer of $5.7M (NIS20.75M), comprised of $3.3M (NIS12M) in 2 payments by Sept. 30, a minimum $1.7M (NIS6.25M) in 4 payments by May 2014, $700K (NIS2.5M) for patents by the end of 2013, and an additional amount based on sale of Alvarion's assets, inventory, and accounts receivable.
Under the new offer, Valley Telecom would assume management of Alvarion on Sept. 15. It would also receive newly-issued shares representing 75% of shares outstanding. Current shareholders would be diluted to 10%.
The new offer is an improvement from Valley Telecom's previous proposal of a minimum of $3.8M for the company.
Shares of Alvarion (ALVR +94.7%) nearly double on no apparent news and heavy volume. ALVR plunged earlier in the week after the company's Receiver submitted an offer that was less favorable to shareholders than expected.
Shares of Alvarion (ALVR -16.9%) plunged after the company's Receiver submitted a motion on Sunday requesting court approval of a $3.3M bid ($1.5M plus a guaranteed $1.8M in milestone payments) by Valley Telecom. Additional payments above the minimum are contingent on sale of existing inventory and collection of accounts receivable.
In addition, Valley Telecom's bid includes a $0.5M payment for newly-issued shares that would represent 75% of outstanding common shares. Existing holders would be diluted to 10%. A previous offer made made by Sigma Wave was much more favorable to equity holders.
The Receiver believes the offer will enable repayment of half of Alvarion's estimated $23M in debt and is superior to the 3 other bids made. The Court has the option to approve the bid or schedule an emergency hearing by Aug. 29.
Previous: Alvarion gives up earlier gains on delay of potential acquisition
Alvarion (ALVR +4.1%) gives up the majority of the morning's gains after the company announces that the court-appointed receiver has requested an extension of the operating plan from Aug. 23 to Aug. 30. That plan allows the company to operate as a going concern and carry out a bidding process while in receivership.
The stock was up as much as 32.9% before the announcement. Traders betting on an acquisition by Aug. 23 were disappointed.
The receiver will "continue discussions with the parties which submitted offers as part of the bidding process to sell the company and/or its assets."
Shares of Alvarion (ALVR -23.9%) are off sharply today after the stock exploded 511% last week. The run came as speculation swirls over a potential acquisition of the Israeli wireless broadband solutions company, which is in receivership.
The deadline for bids was last Thurs. Globesreported that among multiple bids, private Israeli firm Sigma Wave submitted an offer to inject "tens of millions of shekels." The bid is conditioned on acquiring the company as a going concern, bringing employees back to work immediately, and restructuring Alvarion's debt (~$24M).
Current equity holders would also face dilution. Sigma Wave's offer proposes new equity issuances of ALVR stock to employees who stay on board.