Powerwave auction delayed
Powerwave has entered into a Debtor in Possession Credit and Security Agreement with P-Wave Holdings, LLC, an affiliate of The Gores Group. Under the agreement, P-Wave Holdings, LLC will make available to the Company a multiple draw senior secured priming term loan credit facility of up to $5,000,000 (“DIP Facility”) for general corporate purposes and working capital during its bankruptcy case in support of the sales process the Company is undertaking.
“We appreciate the continued support of Gores in making the additional funds available to the Company which allows the Company and its investment banker to complete a more robust marketing and sale process”
The Company’s sales process has been extended by the Bankruptcy Court with bids due on May 9, 2013 and an auction date of May 13, 2013. The Bankruptcy Court has approved the Company’s retention of Houlihan Lokey as its investment banker to assist in the sales process.
Powerwave, which supplies wireless infrastructure including distributed antenna systems, filed for bankruptcy in late January with assets of about $213 million and total debts of $396 million.
Additionally, Powerwave also announced that Ronald J. Buschur has resigned from his positions as President and Chief Executive Officer. The Board of Directors of the Company has appointed Khurram Sheikh as Chief Executive Officer. Mr. Sheikh previously was the Company’s Chief Technology Officer. “We appreciate the continued support of Gores in making the additional funds available to the Company which allows the Company and its investment banker to complete a more robust marketing and sale process,” stated Khurram P. Sheikh, the Company’s CEO.
Powerwave’s bankruptcy case has extended its sales process; bids are now due May 9 and the auction will take place on May 13.