Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets. We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. The effect of all of this was to make our debt levels unsustainable and to collapse the time we had to execute on the new company strategy we laid out six months ago. After a review of all available options, we determined that pursing this sale process is the best and most viable path forward to maximize value, preserve jobs and minimize disruption for our customers.
As part of this process, we have entered into an asset purchase agreement to sell our 5G Mobile Core and RAN businesses to Lumine Group and have asked the court for approval to complete the transaction by the end of April.
Additionally, we’ve secured a stalking horse bid from an affiliate of Vecima for our Cable and Virtual Broadband Network Gateway (vBNG) business, and anticipate that an auction process will follow, in which other parties will have the opportunity to submit bids for the business. We will ultimately proceed with the highest and best offer, which will then be subject to Court approval.
To facilitate the sale process, we filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. We are beginning this process with the support of our senior lenders, and we expect to complete it on an expedited basis.
Casa remains committed to the success of its customers and partners and intends to continue supporting them throughout this process.
During the court-supervised process, Casa will continue:
