Communications equipment company Casa Systems has agreed to sell multiple assets after the company initiated bankruptcy proceedings.
The company this week said it has filed for voluntary Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.
As part of its plans to maximize sales, Casa Systems said it has reached an agreement to sell its 5G Mobile Core and RAN assets to Lumine Group and cable business to Vecima Networks.
Casa Systems provides physical and cloud-native infrastructure technology solutions for wireless, cable, and fixed broadband networks.
The firm has carried out commercial deployments for service providers around the world, including AT&T, Verizon, BT, Rogers, China Mobile, Vodafone, Telefónica, Orange, and many more.
Casa has asked the bankruptcy court for approval to complete the sale to Lumine by the end of April.
Lumine specializes in acquiring, managing, and building industry-specific software, in telecoms and media. In December, Lumine agreed to buy Nokia's device management and service management platform (SMP) for around $200 million.
The company has also requested the Bankruptcy Court approve procedures for soliciting additional bids and to set an auction for mid-May for the sale of its cable business.
Canada-based Vecima specializes in providing future-ready software, services, and integrated platforms for broadband and video streaming networks. The company works with the likes of Comcast, Cox Communications, Vodafone, Liberty Global, and Charter Communications.
“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, chief executive officer, 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 maximize value, preserve jobs, and minimize disruption for our customers.”
Casa noted that in connection with the sale process, it has entered a Restructuring Support Agreement with more than 98 percent of its senior secured lenders. It said this allows the company to use its cash on hand and proceeds of the anticipated Cloud/RAN Sale to fund its operations during the Chapter 11 process.
"To support its operations during the court-supervised process, the company is filing a variety of customary motions seeking, among other things, authorization to meet its obligations to its employees, customers, and vendors. The company expects to receive Bankruptcy Court approval for these requests," the company added.
Casa did state its international subsidiaries are not debtors in the Chapter 11 filing, however, "certain parts of their businesses and related assets are included in the two asset sale transactions."
Casa's NetComm business, which commenced its own voluntary administration proceedings under Australian law on March 11, 2024, is not included in the US Chapter 11 process.
