Alvarion Ltd., which is in receivership, unveiled that Yoav Kfir, the court-appointed Receiver, submitted an urgent motion to the District Court of Tel Aviv. Yaffo requested the Court to approve a revised proposal from Valley Telecom Ltd. to acquire the Company and its assets.
Following the motion submitted by the Receiver requesting the Court to approve the sale of certain assets and a controlling interest of the Company to Valley Telecom, the Receiver received revised proposals from certain bidders and consequently conducted another round of negotiations with these bidders for the Company and its assets. As a result of these negotiations, Valley
Telecom submitted a revised proposal to pay a minimum of NIS 20.75 million (approximately $5.8 million) for all of the Company's assets and, should a creditors' settlement be approved, at least 75% of the Company's outstanding ordinary shares, as well as additional contingent payments.
In particular, Valley Telecom will make the following payments:
-- NIS 12 million payable in two installments by September 30, 2013.
-- A minimum of NIS 6.25 million payable in four installments between November 30, 2013 and May 30, 2014.
-- NIS 2.5 million for the Company's patents payable at the end of 2013. In the event the patents are further sold in the the next two years the Receiver shall be entitled to 50% of the net proceeds of such sale.
-- Additional amounts derived from the realization of Company's assets, inventory and accounts receivables in the two-year period commencing from the Court's approval. In the event a creditors' settlement is no approved, the NIS 6.25 million referred to above shall be credited against this payment.
In addition, under the terms of this proposal, Valley...