Valley Tech offers to buy Alvarion for about $5.8M
The court-appointed receiver responsible for Alvarion is recommending a sale of the company for about $5.8 million in total.
Alvarion, based in Israel, specializes in WiMAX technology, and while there have been some notable WiMAX networks built (Clearwire is the one notable example in the U.S.), the worldwide market overwhelmingly chose to go with LTE. The company has been losing money, and what little private capital it has been able to raise in recent months has not been enough to compensate for the losses. It went into receivership in mid-July.
Yoav Kfir, the court-appointed receiver, has just submitted a motion to the court overseeing the receivership to sell Alvarion to another Israeli company, Valley Telecom, which provides telecommunications services to an international clientele. The deal would be contingent upon approval of a plan to compensate Alvarion’s creditors.
Valley Telecom has offered about $3 million in 2013, to be followed by another $1.5 million in 2014. Valley Telecom has also offered roughly $600,000 for Alvarion’s patents.
If the plan is approved, Valley Telecom will assume the management and financing of the Alvarion’s operations commencing on September 15, 2013. Valley Telecom will also receive newly-issued shares representing at least 75 percent of the company's outstanding ordinary shares.