Airspan Networks Holdings Inc., also referred to as MIMO, has announced that it, along with its U.S. subsidiaries, is voluntarily filing for Chapter 11 bankruptcy proceedings. This action will take place in the United States Bankruptcy Court for the District of Delaware to execute an agreement that has been backed by 97.4% of the company's debt-fueled creditors.
Airspan has solidified a Restructuring Support Agreement with specific funds controlled by the Fortress Investment Group, along with various other principal financial stakeholders. The purpose of the agreement is to set up Airspan for enduring success via a potential $95 million equity financing injection and eradicating the company's current funded debt.
The company anticipates that within the next 30-45 days, it will acquire the court's approval of the transaction. This will lead to Airspan transitioning into a private firm, with the majority ownership held by Fortress affiliates following the receipt of certain governmental and regulatory approvals.
The company has secured a promise from affiliates of Fortress for over $53 million in debtor-in-possession financing. This, coupled with the company's existing cash reserves, is expected to offer adequate capital throughout the restructuring process to support the company's operations.
Airspan is planning to file several conventional "first day" motions with the court, enabling business-as-usual operations during the financial restructuring period. This includes maintaining employee salaries, continuing employee benefits, and paying vendors and suppliers in full during the normal course of business.
In the context of this transaction, current common stockholders of Airspan will be given an option to trade their shares for their share of a total sum of $450,000. Alternatively, stockholders can choose to receive warrants instead of cash. However, if over 150 shareholders select the warrant option, no warrants will be issued.
