Bidding Procedure Approved for Xtera Communications, Inc.
December 06, 2016 at 10:30 am IST
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The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Xtera Communications, Inc. on December 6, 2016. The Court approved the asset purchase agreement between the debtor and H.I.G. Europe – Neptune, Ltd., the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $10 million in cash plus assumption of assumed liabilities. To qualify as a qualified bidder, interested parties should submit their bids by January 23, 2017. The initial minimum overbid should be in the amount of at least $10.75 million. If the debtor receives any qualified bids then it would hold an auction for its assets on January 25, 2017. At the auction, the subsequent bids would be in increments of $0.25 million. 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. The sale hearing is scheduled for January 30, 2017.
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.