Powerwave has secured an additional $5 million debtor-in-possession credit facility as it works to find a buyer. The Gores Group is the buyout specialist financing P-Wave Holdings, which will provide Powerwave with a multiple draw senior secured priming term loan credit facility. P-Wave has already advanced to Powerwave $35 million of a $50 million line of credit. A January default notice from P-Wave triggered Powerwave’s bankruptcy filing.
The company, which supplies wireless infrastructure including distributed antenna systems, filed for bankruptcy in late January with assets of about $213 million and total debts of $396 million. P-Wave, a Gores Group affiliate, had previously objected in court filings to Powerwave’s bankruptcy budget as “totally unreasonable,” as the company tried to continue operations during bankruptcy proceedings.
Powerwave’s bankruptcy case has extended its sales process; bids are now due May 9 and the auction will take place on May 13. The court has approved the retention of investment banking firm Houlihan Lokey to assist in the sales process.
The company also said today that its CEO Ronald J. Buschur is stepping down. Chief technology officer Khurram P. Sheikh will assume the CEO role.
