| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Solavei, LLC > News item |
Solavei seeks cash collateral use through February to fund operations
By Kali Hays
New York, Dec. 24 – Solavei, LLC asked for continued access to the cash collateral of its pre-bankruptcy lender Opus Bank through Feb. 28, according to an emergency motion filed Dec. 24 with the U.S. Bankruptcy Court for the Western District of Washington.
The current deadline for cash collateral use is Dec. 31.
Solavei said that continued use of the cash collateral to is needed “minimize disruption and to avoid termination of its operations pending consummation of a transaction” as it will be unable to meet working capital needs without it, according to the motion.
The company is “in the process of negotiating a transaction with a third-party that will, if confirmed as a part of a plan of reorganization, result in value to creditors.”
As with previous cash collateral budgets, the company will continue with a fund that was implemented with the initial cash collateral budget, which secures the payment of professionals employed by Solavei and its unsecured creditors committee.
The fund will continue to be maintained by its bankruptcy counsel, Bush Strout & Kornfeld LLP.
Opus Bank agreed to a monthly payment to the professional fund up to $50,000.
Solavei agreed to adhere to a weekly budget with fixed amounts of payable expenses that are not to exceed 5% of the fixed amount per week.
Solavei will also provide the court, Opus Bank and T-Mobile USA, Inc., which provides it mobile service on a wholesale basis, a weekly report of its business operations as part of the cash collateral agreement.
A hearing is scheduled for Dec. 30.
Solavei, a social commerce telecommunications company with headquarters in Bellevue, Wash., filed for bankruptcy on June 11. The Chapter 11 case number is 14-14505.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.