The U.S. Bankruptcy Court approved Avaya’s motion for entry of an order authorizing and approving the sale of the Debtors’ networking business free and clear of all claims, liens, rights, interests and encumbrances and authorizing the Debtors to enter into and perform their obligations under the asset purchase agreement and assume and assign certain executory contracts and unexpired leases.
The order states, “The Debtors have agreed to sell, and Extreme Networks, Inc. (the ‘Successful Bidder’) to purchase the Business, and the Debtors have agreed to transfer and the Successful Bidder has agreed to assume certain liabilities in the APA, the ‘Assumed Liabilities’) (collectively, and including all actions taken or required to be taken in connection with the implementation and consummation of the APA, the ‘Sale’….and the Court having entered the Bidding Procedures Order on April 5, 2017; and the Debtors having not received any Qualified Bids, other than the Stalking Horse Bid, pursuant to the Bidding Procedures Order; and the Court having conducted a hearing on the Motion on May 25, 2017 (the ‘Sale Hearing’), at which time all interested parties were offered an opportunity to be heard with respect to the Motion.”
As previously reported, “The total potential value includes at least approximately $68 million in cash proceeds (before transaction costs and purchase price adjustments), up to approximately $22 million of aggregate, undiscounted value in the assumption of future dark lease and pension obligations of certain Avaya non-Debtor entities (with any reduction of this amount to be offset by an increase in cash proceeds) by the Stalking Horse Bidder, and the ultimate release of up to $10 million in cash to Avaya from an indemnity escrow account one year after closing. Pursuant to closing the transaction, Avaya would be responsible for paying up to approximately $5 million in severance costs to employees of the Business not transferred to the Stalking Horse Bidder.”
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