Optibase Ltd. (NASDAQ: OBAS) today announced that it has entered into two agreements with Media 100, a company currently in Chapter 11 proceesings. The first is a definitive loan agreement to provide up to $1 million of secured debtor-in-possession (DIP) financing to Media 100. The second is an asset purchase agreement which, subject to court approval, calls for Optibase to buy all the assets of Media 100 for $2.5 million, less the amount of funding advanced.
In accordance with a previously announced plan to facilitate the transaction, Media 100 has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in US Bankruptcy Court for the District of Massachusetts. The sale will be subject to various conditions, including approval by the court in the Chapter 11 case.
Media 100 develops award-winning advanced media systems for content design, enabling creative professionals to design effects-intensive work on personal computer. The company, which has won an Emmy for its products, is headquartered in Marlboro, Massachusetts.
Optibase provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company’s platforms enable the creation, broadband streaming and playback of high quality digital video.
“The Optibase deal gives Media 100 strong financial support during the Chapter 11 proceeding in order to drive the market penetration of 844/X Version 3 and the debut release of Media 100 HD,” said Media 100 president and CEO John Molinari. “We believe that with our substantial, five-year technology investment, Optibase will acquire products that will be cutting edge and allow for strong competition in the market.”
“Following approval by the Court, Optibase intends to keep Media 100 activity intact as a unit in Optibase in order to continue the development, sales, and support of the Media 100 products,” said Optibase chairman and CEO Tom Wyler.
In the event the transaction is not completed, Media 100 may be required to cease operations.
Published by Globes [online] - www.globes.co.il - on Monday, March 22, 2004