The U.S. Bankruptcy Court issued an order approving (1) the sale of substantially all of Xtera Communications’ assets pursuant to the stalking horse agreement free and clear of liens, claims, encumbrances and other interests and (2) the asset purchase agreement (APA) between the Company and stalking horse bidder H.I.G. Europe – Neptune.
The order states, “Subject to paragraph 34, to the extent that there is at least $900,000 in cash available after the DIP obligations are satisfied in full or otherwise discharged at closing in connection with the effectuation of the DIP credit, and the sum of $1.7 million paid for the benefit of Jon R. Hopper, New Enterprise Associates 9, New Enterprise Associates 10, and ARCH Venture Fund VI, the next $900,000 of cash will be remitted to Cowen and Company, the Debtors’ investment bankers, for fees incurred ahead of Square 1 Bank and Horizon Technology Finance or otherwise ordered by the Court.”
As previously reported, “The revised paragraph in the Bid Procedures Order: G. The Initial Overbid is defined as (i) $10,591,446.23, plus (ii) $500,000, the maximum aggregate amount of the Break Up Fee and Expense Reimbursement, and (iii) $250,000, the Overbid Increment (as set forth in the Bidding Procedures).”
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