Airspan Networks Holdings Inc. (AIRO, Financial) has received judicial consent for an expedited debt reduction process during its bankruptcy proceedings, signaling a potentially rapid recovery from its recent financial downturn, a byproduct of the fading SPAC frenzy on Wall Street.
The firm, a provider of private wireless network solutions, attributes its financial struggles to persistent supply chain issues, heightened competition, and significant investments in research and development.
On Sunday, Airspan filed for bankruptcy, proposing a plan to offer lenders equity in exchange for debt forgiveness and to secure up to $95 million in new funding to support its restructuring efforts, as per documents submitted to the U.S. Bankruptcy Court in Wilmington, Delaware. The company's debt to lenders is approximately $205 million.
By Tuesday, the court had granted Airspan permission to expedite the creditor voting process, a critical step towards exiting bankruptcy. A hearing set for May 8 by U.S. Bankruptcy Judge Thomas Horan will determine if Airspan's debt reorganization plan receives final approval.
If approved, Airspan could exit bankruptcy within a month, underlining the urgency expressed by company attorney Eric Lopez Schnabel for a swift resolution.
Additionally, the Boca Raton, Florida-based company secured preliminary approval for a $53.9 million financing package, which includes refinancing options and new capital to facilitate the restructuring. Immediate access to $7.5 million has been granted, with further approvals pending.
Since its inception in 1998, Airspan has been at the forefront of developing technology for extensive wireless networks, catering to industrial clients and enhancing connectivity in challenging environments, including New York's subway system.
In 2021, Airspan merged with a special purpose acquisition company (SPAC), aiming for a faster and less regulated public trading process compared to traditional initial public offerings (IPOs). However, only a fraction of such mergers from 2021 have been profitable.
The bankruptcy case is filed under Airspan Networks Holdings, 24-10621, in the U.S. Bankruptcy Court for the District of Delaware, Wilmington.
