Casa Systems has entered voluntary bankruptcy after a “significant” decline in revenue.
On Wednesday, the physical and cloud-native infrastructure technology solutions company announced it had filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.
Casa Systems has reached an agreement to sell its 5G Mobile Core and RAN businesses, which include its Axyom Cloud Native 5G Core Software & RAN Assets, to Lumine Group, which it expects to conclude 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, which is due to complete in May.
Michael Glickman, Chief Executive Officer, said, “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. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.
“We are incredibly grateful to our employees for their unrelenting hard work and commitment to serving our customers around the world. Their dedication has enabled us to continue to provide our leading portfolio of all-access broadband network solutions to our customers.”
Casa Systems says it will continue to support its customers throughout the process.
