Motion for Asset Sale Filed by Xtera Communications, Inc.
November 14, 2016 at 11:00 pm EST
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Xtera Communications, Inc. filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on November 15, 2016. The debtor seeks the Court’s approval for the sale of substantially all its assets to H.I.G. Europe – Neptune, Ltd. for a purchase price of $10 million in cash, assumption of certain liabilities, pursuant to the asset purchase agreement dated November 15, 2016. The initial minimum overbid should be at least $0.25 million more than the initial purchase price. Subsequent bids shall be made in the minimum increment of $0.25 million. Bids should accompany by a good-faith deposit of 10% of the purchase price. The stalking horse bidder would be entitled to a break-up fee of 3% of the aggregate purchase price and expense reimbursement of $0.50 million in case of termination of the asset purchase agreement. Transaction is expected to close within 60 days of the sale hearing. Daniel Guyder of Allen & Overy LLP acted as legal counsel for the buyer.
Xtera Communications, Inc. is a provider of subsea systems and telecoms technology. The Company supplies unrepeatered and repeatered networks, through optical amplifiers to deliver traffic directly in inland. Its portfolio of services includes system design, project planning and feasibility studies, on-shore and off-shore security during installation, desktop study, route survey and cable engineering, in-house permitting service, route clearance, shore end and installation operations, post lay inspection and burial, landing route and station development, testing and commissioning, training, and maintenance and operational support. Its products include submarine system technology, repeater units, branching units, open systems, open systems gateway, network management system, optima terminal equipment and unrepeatered systems. It offers Nu-wave Optima platform, which provides a modular platform that serves terrestrial, unrepeatered and ultra-long span submarine applications.