Casa Systems initiates court-supervised Chapter 11 sale process

Casa Systems (CASA) initiated a court-supervised process that is intended to achieve value-maximizing sales of its businesses. To facilitate these sales, the Company filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Company has entered into an asset purchase agreement to sell its 5G Mobile Core and RAN businesses, which include its Axyom Cloud Native 5G Core Software & RAN Assets, to Lumine Group (LMGIF), a global acquirer of communications and media software businesses. The Company has asked the Bankruptcy Court for approval to complete the transaction by the end of April. The Company also entered into a stalking-horse asset purchase agreement to sell its Cable business to an affiliate of Vecima Networks (VNWTF), a global leader in delivering scalable software, services, and integrated technology platforms for broadband access, and content delivery. The Company has asked the Bankruptcy Court to approve procedures for soliciting additional bids and to set an auction for mid-May. The Company remains committed to the success of its customers and partners and intends to continue supporting them throughout this process. 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 anticipated Cloud/RAN Sale to fund its operations and Chapter 11 process. To support its operations during the court-supervised process, the Company is filing a variety of customary motions seeking, among other things, authorization to meet its obligations to its employees, customers and vendors. The Company expects to receive Bankruptcy Court approval for these requests. Casa’s international subsidiaries are not debtors in the Chapter 11 filing; however, certain of their businesses and related assets are included in the two asset sale transactions. The international subsidiaries will continue to operate in the ordinary course pending the closing of the sales. The Company’s NetComm business, which commenced voluntary administration proceedings under Australian law on March 11, 2024, is not included in the U.S. Chapter 11 process.