Airspan, Son of Wall Street's SPAC Boom, Seeks Fast Bankruptcy

(Bloomberg) - Airspan Networks Holdings Inc. got court approval to try to trim debt in bankruptcy proceedings at a faster-than-normal schedule, putting it on track for a quick turnaround after becoming the latest financial firm to fail in Wall Street's SPAC boom.

Top Reads from Bloomberg

• A million simulations of the U.S. economy lead to one conclusion: debt is at risk.

• Trump Matchmaker's Business Doesn't Matter

• Iran vows to punish Israel for attack on embassy in Syria

• Tesla Disappoints Analysts as Electric Cars Take a Hit

• Trump Receives $175 Million in Bonds from Billionaire Fan's Company

The company, which helps customers build private wireless networks, blamed its losses on lingering supply chain disruptions, competitive pressures and the need to invest heavily in research.

Airspan Inc. filed for bankruptcy Sunday, proposing to give ownership to its lenders in exchange for canceling debts and raising up to $95 million in cash to help restructure the company, according to court documents filed in U.S. Bankruptcy Court in Wilmington, Delaware. Court documents show the company owes the lenders about $205 million.

The company received court approval Tuesday to seek a quick vote from creditors in the coming weeks, a key step before it emerges from bankruptcy. U.S. Bankruptcy Judge Thomas Horan is scheduled to hold a hearing on May 8 to consider final approval of Airspan's debt reduction plan.

If Horan approves the plan, Airspan will be able to emerge from bankruptcy under court supervision in only about a month.

"The sooner we get out of this, the better," company attorney Eric Lopez Schnabel told Holland at the court hearing.

Artech, based in Boca Raton, Florida, also received preliminary approval for a $53.9 million financing package that will refinance some of the old debt and provide new cash to help pay for the restructuring. The company will receive $7.5 million in cash immediately, with the remainder to be returned to the court for final approval.

Founded in 1998, Airspan develops software and hardware for large wireless networks used by industrial customers and other major users. One of the company's largest projects was helping to install wireless technology in the New York City subway system.

In 2021, Airspan entered into a carve-out with a Special Purpose Acquisition Company (SPAC), which is a process designed to help companies achieve a public listing more quickly and with fewer regulatory requirements than a typical initial public offering. Only about 15% of such transactions completed in 2021 were profitable.

The case is known as Airspan Networks Holdings, 24-10621, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Most Read by Bloomberg Businessweek

• The cautionary tale of Wirecutter and the internet's most popular wok

• How Michael Rubin mastered all the cards

• Building Diversity in the Face of Affirmative Action Prohibition

• FTX's original sin is a warning to all cryptocurrencies.

• Eclipse boomtowns wait for their moment in the (blocked) sunlight

Copyright ©2024 Bloomberg Intelligence.