Data storage co Exanet back in business

Shareholders injected $450,000 into the start-up to cover operating costs until sale.

22 December 09 16:34, Shmulik Shelah

Network-attached storage (NAS) start-up Exanet Inc. has resumed limited operations ten days after the Tel Aviv District Court ordered the company's shareholders to inject additional capital into the company. Exanet temporary liquidator Adv. Erez Haber today announced that he would keep the company in business for the next two months until it is sold.

Eitan Wertheimer's Microdent Technologies Ltd. owns 40% of Exanet, Evergreen Venture Partners owns 25%, and Dr. Giora Yaron owns 13%. They agreed to inject an additional $450,000 into the company to cover operating costs.

Two weeks ago, Exanet notified its 62 employees in Israel that it was closing down. The employees responded by asking the court to appoint a temporary liquidator, because the company owed them $1 million. At the same time, Kreos Capital asked the court to appoint a receiver for the company, because of a $10 million loan that the company could not repay.

Exanet will continue operations with 35 employees, plus six support staff. Haber is in contact with several potential buyers. The likeliest buyer appears to be computer maker Dell Inc. (Nasdaq: DELL), which has been in talks on collaboration with, and investment in, Exanet over the past year.

Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009