A US bankruptcy judge has approved Casa System's quick sale of its cloud-based assets to Lumine Group for $32.2 million.
Bloomberg reported last week that a judge in Delaware approved the sale to Lumine Group, which announced earlier this month that it had agreed to acquire Casa Systems’ Axyom cloud native 5G Core software & RAN assets.
Lumine edged out competition from cloud firm Skyvera to secure the assets, narrowly outbidding the company by $200,000.
It's reported that had the sale not been approved, Casa would have suffered a cash crisis and be forced to furlough its workforce.
“My primary concern was that in the future, sophisticated parties could engineer a liquidity crisis to avoid borrowing money and going through the longer process of arranging a more traditional auction," said US Bankruptcy Judge Karen Owens during a court hearing last week in Wilmington, Delaware.
Owens noted she was at first skeptical of the quick sale because it was designed to raise cash to pay for the reorganization case.
Casa, which provides physical and cloud-native infrastructure technology solutions for wireless, cable, and fixed broadband networks, agreed to sell multiple assets after the company initiated bankruptcy proceedings earlier this month.
The company filed for voluntary Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware and had pleaded with the courts to approve the sale of the assets by the end of April.
As part of its plans to maximize sales, Casa Systems said it has reached an agreement to sell its 5G Mobile Core and RAN assets to Lumine Group and cable business to Vecima Networks.
Casa has carried out commercial deployments for service providers around the world, including AT&T, Verizon, BT, Rogers, China Mobile, Vodafone, Telefónica, Orange, and others.
The proceeds from the sale will enable Casa to keep operating, it said.
Lumine specializes in acquiring, managing, and building industry-specific software, in telecoms and media. In December, Lumine agreed to buy Nokia's device management and service management platform for around $200 million.
