Casa Systems gets conditional disclosure statement approval; sale OK’d

By Sarah Lizee

Olympia, Wash., April 26 – Casa Systems, Inc. received conditional approval of the disclosure statement for its Chapter 11 plan of liquidation, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for June 4.

The company has also received approval to sell its 5G Mobile Core and RAN businesses, which include its Axyom Cloud Native 5G Core Software & RAN Assets, to Lumine Group US Holdco Inc. for $32.25 million.

An auction was held on Thursday for the assets. The company had initially entered into a $15 million asset purchase agreement with Lumine Group, but Casa recently received an $18 million bid for those same assets from Skyvera US Holdco, LLC.

Casa chose Skyvera’s bid to be the starting bid at an auction. The minimum overbid was set at $100,000. Following the auction, Skyvera’s $32 million bid was named the backup bid.

The company has also entered into a stalking horse asset purchase agreement to sell its cable business to an affiliate of Vecima Networks, Inc. Casa Systems is seeking approval of procedures for soliciting additional bids and to set an auction for mid-May.

In connection with the sale process, the company entered a restructuring support agreement with more than 98% of its senior secured lenders that, among other things, allows Casa to use its cash on hand and proceeds of the Cloud/RAN Sale to fund its operations and Chapter 11 process.

According to the disclosure statement, other secured claims and other priority claims are unimpaired by the plan.

Holders of term loan facility claims are expected to receive a recovery of 11%. Holders will receive a pro rata share of sale proceeds, the liquidation of net distributable assets and other cash.

All other classes are expected to receive no recovery under the plan. These include general unsecured claims, intercompany claims, section 510(b) claims, existing equity interests and intercompany interests.

Casa is a Delaware-incorporated cloud computing and broadband networking company with operations in over 70 countries. The company filed bankruptcy on April 3 under Chapter 11 case number 24-10695.

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