Solavei eyes stretch of cash collateral as asset sale closing delayed

By Kali Hays

New York, April 20 – Solavei, LLC asked the U.S. Bankruptcy Court for the Western District of Washington to authorize continued use of cash collateral through May, according to an emergency motion filed April 17.

The company is currently approved to use its lenders’ cash collateral through April, as Solavei expected the sale of its assets to Aspider Solutions, Inc. to close by April 30, but said, “It is now anticipated that the closing date may occur sometime in May 2015.”

“Solavei requires the immediate and continued use of the cash collateral to minimize disruption and to avoid termination of its operations pending the closing of the Aspider transaction. Without use of cash collateral, Solavei will be unable to pay its ongoing operating expenses, payroll and member commissions,” the motion stated.

As previously reported, the company received confirmation of its plan of reorganization on April 17.

An extension hearing is set for May 1.

Solavei, a social commerce telecommunications company with headquarters in Bellevue, Wash., filed for bankruptcy on June 11, 2014. The Chapter 11 case number is 14-14505.

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