NetComm Wireless granted creditor meeting extension as potential buyers close in
NetComm Wireless has landed a three-month extension to its convening period for its second creditors meeting after entering voluntary administration.
NetComm Wireless has been granted a three-month extension to its convening period for its second creditors meeting after entering voluntary administration in March.
The company, known for its pivotal role in the development of 5G and IoT infrastructure in Australia, continues its operations under the supervision of administrators Kate Conneely and Rahul Goyal of Cor Cordis.
“We are continuing to trade the business and are grateful for the support from all employees, customers and suppliers,” Conneely said in an email to SmartCompany.
Cor Cordis also confirmed that there are multiple parties interested in purchasing the business that are currently undertaking due diligence.
Last week the administrators obtained a three-month extension to the convening period to July 17, 2024.
“The extension was sought to allow us sufficient time to complete a sale and recapitalisation process for the business,” Conneely said.
NetComm Wireless, which has been in operation in Australia for over 40 years, entered administration after financial struggles that stemmed from several market and operational challenges.
Casa Systems, a US company that acquired NetComm in 2019, had hoped to enhance its portfolio and global reach through this acquisition.
However, Casa Systems faced substantial financial difficulties, reporting a significant net loss of US$25.6 million in the third quarter of 2023 under GAAP. This was influenced by non-cash charges like inventory obsolescence and impairment losses on their corporate headquarters and workforce restructuring.
These financial setbacks led Casa Systems to attempt a divestment process of NetComm Wireless in the second half of 2023. Despite multiple bids being received over several months, they weren’t deemed satisfactory by the company.
This compelled the directors to opt for administration as a strategic move to restructure and potentially sell the company.
It continues to be unclear how much may be owed to creditors.
