Riverstone requests court OK sell operations to Lucent for $170 million

By Caroline Salls

Pittsburgh, Feb. 13 - Riverstone Networks, Inc. requested court approval of the purchase agreement with stalking horse bidder Lucent Technologies Inc. for the proposed $170 million sale of Riverstone's business operations, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

On Thursday, the company requested court approval of the bidding procedures for the proposed sale.

As previously reported, the company's cash and convertible subordinated notes are not included in the purchase agreement.

Following the close of the transaction, Riverstone will become part of Lucent's multimedia network solutions business, and substantially all of Riverstone's employees are expected to join Lucent.

Lucent has paid an $11.9 million deposit. If the sale is terminated, Riverstone will pay a termination fee of 3% of the purchase price.

If Lucent is not the high bidder, Riverstone will pay it a $1 million break-up fee.

The auction will be held March 20, and the sale hearing is scheduled for March 23.

A hearing on the bidding procedures will be held Feb. 23.

Riverstone, a Santa Clara, Calif., provider of carrier ethernet routers, filed for bankruptcy on Feb. 7. Its Chapter 11 case number is 06-10110.

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