Alvarion receiver begins meeting investors

Sources inform ''Globes'' that Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) receiver Yoav Kfir and his staff have already met with several potential investors to try and reach an offer for sale, which can be submitted to the court. Kfir was appointed receiver on Monday at the request of creditor Silicon Valley Bank. Interested parties at this early stage include other companies in the wireless equipment business and financial investors. Kfir expects to publish an invitation for bids soon and complete the process within a month.

In yesterday's court hearing, Alvarion's attorney said that the company would need $1 million to continue operating over the next two weeks. This means $2 million in monthly working capital, which Alvarion does not have: its cash reserves total just $200,000. Kfir will try to secure financing for this period, in order to keep as many employees as possible. They employees have meanwhile been asked to take unpaid leave for several days. Their attorney told the court yesterday that they oppose this.

In a meeting with Alvarion's employees, Kfir offered them the option of reduced salaries (which the court would have to approve), and a bonus when the company is sold.

Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2013