Alvarion Finally Files for Bankruptcy
Published on: 15th Jul 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Troubled Israeli wireless equipment vendor Alvarion has finally agreed to appoint a receiver and wont be contesting an attempt by a US bank to secure a winding up order.
In a blunt statement, the company said that it "has decided not to object to the request submitted by Silicon Valley Bank to the District Court of Tel-Aviv - Yaffo for the enforcement of liens registered in connection with a loan extended by SVB to the company, and for the appointment of a receiver to enforce such liens."
In plain English, the company was late in repaying USD3.2 million of a US$30 million loan that it had borrowed to fund the acquisition of Wavion in 2011.
The lender sought a winding up order, and the company has decided to accept the long expected inevitability of a bankruptcy order.
The WiMAX to Wi-Fi vendor was formed in 2001 from the merger of BreezeCOM and Floware and was at one time valued in excess of USD1 billion. The collapse of the WiMAX market hurt the company, and its move into Wi-Fi came too late to turn around the business.
A group of company employees have also launched a lawsuit seeking payment of wages for this month in light of the bankruptcy order.
The winding up of the company is also bad news for Clal Finance, which only a few weeks ago agreed to buy a 10.5% stake in the company for USD1.2 million. That stake is now almost certainly going to be written off.