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Xtera Communications Procedures Approved

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The U.S. Bankruptcy Court approved Xtera Communications’ procedures in connection with the sale of substantially all of the Debtors’ assets, scheduling related auctions and a hearing to consider approval of sale; approving bid protections and authorizing the sale of substantially all of the Debtors’ assets free and clear of liens, claims, encumbrances and other interests and approving the assumption and assignment of certain executory contracts and unexpired leases. The stalking horse purchaser is H.I.G. Europe – Neptune.

As previously reported, “Pursuant to the terms of the Stalking Horse Agreement, the Stalking Horse Purchaser has agreed to purchase the Assets for a purchase price of $10 million in cash, the assumption of certain liabilities, with a reduction in an amount set forth in the DIP Facility under the DIP Financing Agreement with respect to which Seller and the guarantors under the DIP Financing Agreement are joint and several obligors in full and final satisfaction of the obligations under the DIP Financing Agreement.”

In addition, “The Stalking Horse Purchaser, in making this offer, has relied on promises by the Debtors to seek the Court’s approval of (a) the payment of a breakup fee in the amount of 3% of the aggregate amount of the Purchase Price under the Stalking Horse Agreement if the Debtors enter into an Alternative Transaction (the ‘Break Up Fee’), (b) reimbursement of the reasonable fees, costs, and expenses incurred by the Stalking Horse Purchaser and its affiliates in connection with the transactions contemplated by the Stalking Horse Agreement, subject to a cap of $500,000 (the ‘Expense Reimbursement’), and (c) the provision in the Bidding Procedures Order that the bid procedures approved thereunder provide for an initial overbid amount equal to not less than: (i) an amount equal to (x) the Cash Consideration, the DIP Credit Bid and Release, and (y) cash consideration in an amount equal to the Break Up Fee and Expense Reimbursement, plus (ii) $250,000 in cash, and minimum bid increments thereafter of $250,000.” An auction is scheduled on January 25, 2016.

Read more telecom bankruptcy news.

The post Xtera Communications Procedures Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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