TORONTO — DragonWave, an Ottawa-based provider of carrier-grade packet microwave network solutions, announced late Monday a receiver has been appointed over DragonWave’s assets and undertakings as its creditors pursue a court-supervised sale of the company.
The Ontario Superior Court of Justice has approved an application by Comerica Bank, acting as agent for DragonWave’s senior lenders, to appoint KSV Kofman Inc. as receiver and manager over all of the property, assets and undertakings of DragonWave, pursuant to section 243(1) of the Bankruptcy and Insolvency Act and section 101(1) of the Courts of Justice Act.
KSV Kofman is expected shortly to seek court approval of a sale process for DragonWave’s business and assets “in order to provide an opportunity for interested purchasers or investors to submit going concern bids in an effort to preserve the company’s business and maximize value for all stakeholders,” the company announced in a press release.
It is anticipated DragonWave will continue to operate in the normal course during the sale process. However, effective July 20, 2017, DragonWave’s common shares were suspended from trading on the Toronto Stock Exchange.
All court materials filed in the company’s receivership proceedings are available on the receiver’s website at http://ksvadvisory.com/dragonwave-inc.
(Update: On Tuesday, Aug. 1, DragonWave announced in a press release Peter Allen, Claude Haw, Cesar Cesaratto and Lori O’Neill have resigned from the company’s board of directors. In addition, the company’s receiver, KSV Kofman, has been advised the Continued Listing Committee of the Toronto Stock Exchange has decided to delist DragonWave’s common shares effective at the close of market on August 30, 2017. Furthermore, NASDAQ has issued a notice to DragonWave indicating its decision to delist the company’s common shares and to suspend trading in the common shares effective at the opening of business on August 2, 2017. The receiver, on DragonWave’s behalf, does not intend to appeal either stock exchange’s decision. All court materials filed in the company’s receivership proceedings are now available on the receiver’s website at: http://www.ksvadvisory.com/insolvency-cases/dragonwave-inc/.)
