Wireless broadband provider Alvarion wins court decision against creditor
Court denied creditor Silicon Valley Bank's request for appointment of receiver, lien enforcement.
Alvarion (Nasdaq: ALVR), a company that provides wireless broadband systems, announced on July 11 that its creditor Silicon Valley Bank submitted “a request to the District Court of Tel Aviv – Yaffo for the enforcement of liens registered in connection with a loan granted by SVB to the company, and for the appointment of a receiver to enforce such liens.” In a later announcement, Alvarion stated that the court "has decided not to currently honor Silicon Valley Bank's unilateral request” for the lien enforcement and receiver appointment. "The court has prohibited any disposition of Alvarion's assets, whether direct or indirect, until and unless the court decides otherwise," the company added. It then said further court hearings were scheduled for Monday, July 15, 2013.
Through a spokesperson, Silicon Valley Bank declined to comment on Alvarion’s particular financial situation, but said the bank is “always committed to finding the best possible solution for our clients, whatever their situation, and have been cooperating in this case.”
In November 2011 Silicon Valley Bank announced an agreement through which Alvarion secured $30 million in growth capital financing. The announcement said, “The facility is being used to finance the company’s acquisition of privately owned Wavion, an Israeli-based technology leader in carrier-grade WiFi applications.”
Alvarion has received some positive press recently. In January 2013 we covered the company’s selection as equipment provider to the Arctic Slope Telephone Association Cooperative (ASTAC), which provides local and long-distance service, Internet, wireless and data services across a roadless, remote arctic area of more than 90,000 square miles of Alaska’s North Slope region.
Last summer analyst firm ABI listed Alvarion among what it described as the “next generation” of distributed antenna system (DAS) vendors, saying that Alvarion and others “are the ones to watch out for as they each bring unique DAS innovations that push the limits on cost, flexibility and scalability, especially when it comes to supporting multiple technologies and multiple operators on fewer infrastructure elements.” ABI also put Zinwave, SOLiD Technologies and Optiway in the “next-generation” category of DAS vendors.