Airspan Networks which specializes in developing 5G hardware and software, said it plans to trade its more than $205 million in funded debt for equity and raise up to $95 million in new equity financing and has filed for Chapter 11 protection at a Delaware bankruptcy court.
“This support agreement is the culmination of a strategic review process, and we believe it is the best path forward for Airspan to continue providing exceptional services and products to our customers worldwide,” said Glenn Laxdal, president and chief executive officer at Airspan.
“By strengthening the company financially with new capital and a debt-free balance sheet, we will be better positioned to execute our plan to capitalize on the significant growth opportunities across our public and private network markets. We appreciate the support and engagement of all of our stakeholders as we build Airspan for the future.”
Airspan said it expects to obtain court approval for the transaction in the next 30 to 45 days, noting the decision to file for Chapter 11, has received "support from 97.4 percent of the company’s funded debt creditors."
