Airspan gets conditional disclosure statement approval; plan hearing set

By Sarah Lizee

Olympia, Wash., April 2 – Airspan Networks Holdings Inc. received conditional approval of the disclosure statement for its pre-packaged Chapter 11 plan from the U.S. Bankruptcy Court for the District of Delaware on Tuesday, according to an order.

The combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for May 8.

As a reminder, the company said it has entered into a restructuring support agreement with funds managed by Fortress Investment Group and several of its other key financial stakeholders to position Airspan for long-term success through up to $95 million of new equity financing and the elimination of all the company’s existing funded debt. Airspan said the RSA has received support from 97.4% of its funded debt creditors.

The transaction will result in Airspan becoming a private company majority-owned by Fortress affiliates after receiving governmental and regulatory consents.

The company’s prepetition funded debt includes $146.9 million of term loans and convertible notes due December 2024, a $46.41 million subordinated term loan due December 2024 and an $11.83 million prepetition subordinated convertible note that became due June 2020.

According to a disclosure statement filed Sunday, the plan provides that holders of senior secured claims will receive their pro rata share of 94.375% of new common equity, subject to dilution on account of a management incentive plan (MIP), new money common equity, new warrants, an equity backstop premium and any fees to be paid in the form of new common equity; and the right to participate in the new-money common equity investment opportunity.

Holders of allowed subordinated claims will receive their pro rata share of 5.625% of new common equity, subject to dilution; new existing subordinated debt warrants; and the right to participate in the new-money common equity investment opportunity.

Airspan’s existing common stockholders will have the opportunity to receive in exchange for their shares their pro rata share of a total of $450,000 or, at their election, warrants in lieu of cash; provided that if more than 150 shareholders elect to receive warrants, no warrants will be issued.

Airspan is a Boca Raton, Fla.-based provider of software and hardware for 5G networks. The company filed bankruptcy on March 31 under Chapter 11 case number 24-10621.

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