Several Investors Interested in Alvarion, Receiver Says

Jasmin Gueta
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Jasmin Gueta

Several investors have expressed interest in Alvarion and have met with the court-appointed receiver, said Yoav Kfir, who was appointed to that job at the beginning of the week.

Kfir said he published an invitation for offers Tuesday, which means that investors will soon be able to start running checks on the wireless broadband equipment company and submit formal proposals to the court.

The company has only $200,000 in its kitty at the moment, while its operating expenses total $2 million a month.

Since the company cannot overspend its accounts, Kfir said, this means it will be able to keep only 15 of its 100 workers on the job in order to enable a sale to go through.

He therefore met with employees yesterday, proposing that they take unpaid leave or, alternatively, work for reduced pay and then get a bonus when the company is sold.

Last weekend, Silicon Valley Bank submitted a request to cash in its collateral and appoint a receiver for Alvarion after the latter went six months without making payments on a $30 million loan it had taken to buy a company named Wavion.
On Sunday, its board of directors said it wouldn’t fight SVB’s petition for a wind-up order. This is an indication that it has given up on paying off its debts.

At its peak, the company employed 1,000 people and traded at a market cap of NIS 4 billion. In its petition, SVB claimed that Alvarion had failed to meet repayment of some $3.2 million, which it asserts the company can’t repay, rendering the company insolvent.

Alvarion had provided the bank security on the loan in the form of its own stock, accounts receivable, intellectual property, bonds including liens on its assets, goodwill and other securities and rights.

Nasdaq, where Alvarion is dual-listed.Credit: Bloomberg