Casa Systems Inc: going-concern / distress — Casa Systems files Chapter 11; sells 5G core/RAN to Lumine for $15M, cable to Vecima for $20M

Casa Systems Inc

Filed voluntary Chapter 11 petitions on April 3, 2024; intends to sell substantially all assets.
Entered APA with Lumine Group for 5G Mobile Core and RAN assets for $15M, subject to court approval.
Entered stalking horse APA with Vecima for cable business at $20M; auction for higher bids in mid-May.
RSA with >98% of senior secured lenders allows use of cash on hand and Cloud/RAN proceeds to fund operations.
Common stockholders likely receive no distribution; NetComm Australian VA is separate.

item 1.01 item 1.03 item 2.04 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Casa Systems Inc reported a default on credit facility.

Instrument: credit facility
Event: default

Exact text from the filing

The commencement of the Chapter 11 Cases described in Item 1.03 above constitutes an event of default that accelerated the Company’s obligations under the Credit Agreements.

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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

Casa Systems Inc entered chapter 11 in United States Bankruptcy Court for the District of Delaware (petition 2024-04-03).

Proceeding: chapter 11
Court: United States Bankruptcy Court for the District of Delaware
Petition: 2024-04-03

Exact text from the filing

On April 3, 2024, the Debtors filed voluntary petitions for relief under the Bankruptcy Code in the Bankruptcy Court thereby commencing the Chapter 11 Cases.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Casa Systems Inc entered into Cable Stalking Horse Asset Purchase Agreement with Vecima Technology Inc. valued at Sale of cable and broadband business assets for $20,000,000, subject to reductions, expense reimburs (effective 2024-04-02).

Action: entry
Agreement: asset purchase
Counterparty: Vecima Technology Inc.
Value: Sale of cable and broadband business assets for $20,000,000, subject to reductions, expense reimburs
Effective: 2024-04-02

Exact text from the filing

On April 2, 2024, the Company and certain of its subsidiaries entered into a “stalking horse” asset purchase agreement with Vecima Technology Inc. (“Vecima”), providing for the sale and purchase of certain assets related to the Debtors’ cable and broadband business units (the “Cable Stalking Horse APA”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Casa Systems Inc entered into Restructuring Support Agreement with Consenting Superpriority Term Loan Lenders and Consenting Stub Lenders (collectively, Consenting Term Loan Lenders) valued at Restructuring Support Agreement; transactions include chapter 11 cases, cash collateral use, asset s (effective 2024-04-02).

Action: entry
Agreement: credit facility
Counterparty: Consenting Superpriority Term Loan Lenders and Consenting Stub Lenders (collectively, Consenting Term Loan Lenders)
Value: Restructuring Support Agreement; transactions include chapter 11 cases, cash collateral use, asset s
Effective: 2024-04-02

Exact text from the filing

On April 2, 2024, Casa Systems, Inc. (the “Company”) entered into a Restructuring Support Agreement (including all exhibits thereto, collectively, the “RSA”) with (i) certain of its affiliates (as set forth in the RSA, and together with the Company, the “Company Parties”), (ii) certain lenders (the “Consenting Superpriority Term Loan Lenders”) under that certain Superpriority Credit Agreement, dated as of June 15, 2023 (as amended, the “Superpriority Credit Agreement”); and (iii) certain lenders (the “Consenting Stub Lenders” and together with the Consenting Superpriority Term Loan Lenders, the “Consenting Term Loan Lenders”) under that certain Credit Agreement, dated as of December 20, 2016 (as amended, the “2016 Credit Agreement” and together with the Superpriority Credit Agreement, the “Credit Agreements”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Casa Systems Inc entered into Cloud/RAN Asset Purchase Agreement with Lumine Group US Holdco Inc. valued at Sale of cloud-native software portfolio and radio access networks business for $15,000,000, subject (effective 2024-04-02).

Action: entry
Agreement: asset purchase
Counterparty: Lumine Group US Holdco Inc.
Value: Sale of cloud-native software portfolio and radio access networks business for $15,000,000, subject
Effective: 2024-04-02

Exact text from the filing

On April 2, 2024, the Company and certain of its subsidiaries entered into an asset purchase agreement with Lumine Group US Holdco Inc. (“Lumine”) providing for the sale and purchase of the Debtors’ cloud-native software portfolio, radio access networks business and related assets (the “Cloud/RAN APA”).

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299 debt financings filed in the last 30 days. Browse all debt financings →

Source: SEC EDGAR

accession 0001193125-24-085992

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