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Casa Systems seeks bankruptcy protection to sell assets By Investing.com

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ANDOVER, Mass. – Casa Systems Inc. (NASDAQ:), a provider of network technology solutions, has filed for Chapter 11 bankruptcy protection as part of a strategic move to sell its businesses, the company announced today. The filing in the U.S. Bankruptcy Court for the District of Delaware is aimed at facilitating the sale of its 5G Mobile Core and RAN businesses to Lumine Group, as well as its Cable business to an affiliate of Vecima Networks Inc.

The company has entered into an asset purchase agreement with Lumine Group for its Axyom Cloud Native 5G Core Software & RAN Assets, with plans to complete the transaction by the end of April, pending court approval.

Additionally, Casa Systems has entered a stalking-horse asset purchase agreement for its Cable business with an affiliate of Vecima Networks, which is recognized for scalable software and integrated technology platforms for broadband access. The company seeks court approval to set an auction for this sale in mid-May.

Casa Systems’ CEO, Michael Glickman, cited significant declines in revenue and profits due to reduced capital investment and procurement trends in the cable and telco markets as factors leading to the bankruptcy filing. Despite these challenges, Glickman emphasized the company’s commitment to maximizing value, preserving jobs, and minimizing customer disruption through the Chapter 11 process.

During the court-supervised sale process, Casa Systems will continue to operate with the support of a Restructuring Support Agreement with its senior secured lenders. This agreement allows the company to use its cash on hand and proceeds from the anticipated Cloud/RAN Sale to fund operations and the Chapter 11 process. The company’s international subsidiaries, which are not included in the Chapter 11 filing, will maintain normal operations pending the closing of the sales.

The company has engaged Sidley Austin LLP as legal counsel, Ducera Partners LLC as financial advisor, and Alvarez & Marsal North America, LLC as restructuring advisor. Additional information regarding Casa Systems’ financial restructuring is available on their dedicated website.

This news report is based on a press release statement from Casa Systems, Inc.

InvestingPro Insights

In light of Casa Systems Inc.’s recent Chapter 11 bankruptcy filing and plans to sell off its various business units, a deeper look at the company’s financial health through InvestingPro data reveals a challenging picture. With a market capitalization that…

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