Silicon Valley Bank has petitioned the Tel Aviv District Court to appoint a receiver for Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) over a $3 million debt which the bank says that the company cannot repay.
Alvarion develops Wi-Fi solutions, based on its acquisition of Wavion Networks in late 2011. The company sold its original Wi/MAX business to Telrad Networks Ltd. for $12 million earlier this year, after Wi/MAX lost to LTE technology for 4G networks, ending up as a niche technology.
Alvarion's aggregate losses totaled $400 million as of the end of 2012, it has fired hundreds of employees, and sold some of its patents. In June it raised $3 million from Titan Investments Ltd. and Yorkville Advisors LLC in order to improve its working capital.
The company's share price has fallen 98% in the past five years, and after news of the court petition trading in the company's shares was suspended on the TASE.
The company said it is "reviewing the legal ramifications of this request."
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2013
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