Airspan Receives Up To $95M Equity Financing, Eliminates All Debt, And Becomes Private Under Fortress Majority Ownership; Files Chapter 11 To Expedite Restructuring
Portfolio Pulse from Charles Gross
Airspan Networks Holdings Inc. (MIMO) announced a Restructuring Support Agreement with Fortress Investment Group and other stakeholders, providing up to $95M in equity financing and eliminating all debt. The company filed for Chapter 11 to expedite restructuring, aiming to become private under Fortress majority ownership. Airspan received over $53M in DIP financing to support operations during restructuring, with court approval pending. Existing stockholders may exchange shares for cash or warrants.
March 31, 2024 | 6:34 pm
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Airspan Networks Holdings Inc. enters a restructuring agreement with Fortress, receives up to $95M in equity financing, eliminates debt, and files for Chapter 11 to become a private company.
The restructuring agreement and Chapter 11 filing indicate a significant transformation for Airspan, aiming for long-term success. The elimination of debt and infusion of up to $95M in equity financing could stabilize the company's finances. However, the impact on the stock price is uncertain due to the complexity of bankruptcy proceedings and the transition to private ownership, which typically removes the stock from public trading. The short-term impact is neutral as the benefits of financial restructuring may be offset by the uncertainties of the Chapter 11 process.
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