Specifically, the company has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
Casa Systems, a provider of physical and cloud-native infrastructure technology solutions, has entered into an asset purchase agreement.
Under which, it has agreed to sell its 5G Mobile Core and RAN businesses, which include its Axyom Cloud Native 5G Core Software & RAN Assets, to Lumine Group, a global acquirer of communications and media software businesses.
The company has asked the Bankruptcy Court for approval to complete the transaction by the end of April 2024.
“Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets,” said Michael Glickman, CEO of Casa Systems.
“We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximise value, preserve jobs and minimise disruption for our customers.”
At the same time, Casa Systems has also entered into a stalking-horse asset purchase agreement (an initial bid on the assets of a bankrupt company) to sell its cable business.
The deal has been agreed with an affiliate of Vecima Networks, a global leader in delivering scalable software, services, and integrated technology platforms for broadband access, and content delivery.
The company has asked the Bankruptcy Court to approve procedures for soliciting additional bids and to set an auction for mid-May 2024.
“We are incredibly grateful to our employees for their unrelenting hard work and commitment to serving our customers around the world,” added Glickman.
“Their dedication has enabled us to continue to provide our leading portfolio of all-access broadband network solutions to our customers. Throughout this process, we will continue to support our loyal customers.”
The company has confirmed that it will continue to operating as normal during the court-supervised sale process.
In line with this sales process, the company has also entered a Restructuring Support Agreement with more than 98% of its senior secured lenders that enables Casa to use its cash on hand and proceeds of the anticipated Cloud/RAN Sale to fund its operations and Chapter 11 process.
The company is also filing a number of customary motions seeking approval to meet its obligations to its employees, customers and vendors.
