Xtera Communications gets approval to sell assets to lender vehicle

By Caroline Salls

Pittsburgh, Jan. 30 – Xtera Communications, Inc. received court approval to sell substantially all of its assets, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, an acquisition vehicle established by Xtera’s debtor-in-possession lenders, comprised of one or more affiliates of H.I.G. European Capital Partners LLP, agreed to serve as stalking horse bidder. The company received no qualified competing bids.

Under the stalking horse agreement, the DIP lender vehicle will purchase Xtera’s assets for $10 million in cash, plus the assumption of specified liabilities, with a reduction set by the DIP financing agreement not to exceed $2.6 million.

Allen, Texas-based Xtera sells high-capacity optical transport solutions to support deployments of optical cable networks. The company filed bankruptcy on Nov. 15 under Chapter 11 case number 16-12577.

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