Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) has been delisted from Nasdaq, and trading in the share on the Tel Aviv Stock Exchange (TASE) has been suspended. The share will begin trading on the Pink Sheets, under the ticker "ALVRQ".
Alvarion was suspended from the Nasdaq Capital Market, after failing to meet the conditions for keeping its listing. One criterion was to emerge from the interim liquidation and receivership, into which it entered last summer, by January 13. Sources inform ''Globes'' that most of Alvarion's creditors support the debt settlement, and that the next stage in the process is obtaining court approval of it.
Alvarion's receiver, Yoav Kfir, is managing simultaneous processes, including implementation of the debt settlement, the sale of assets, and keeping the company's stock market listings. Alvarion was sold to Valley Telecom Ltd., owned by Jorge Pinievsky, for NIS 38 million in September 2013. The company resumed operations, hired a new CEO, Giora Levy, and has even hired workers.
The notice by the Nasdaq Listing Qualifications Hearings Panel is, however, bad news, partly because of the timetable. Several months ago, Pinievsky and Kfir persuaded the panel not to delist Alvarion, and it obtained an extension, which expired this week, with no debt settlement. It also failed to meet other criteria, including the publication of its financial report for the second quarter of 2013.
The processes are inter-dependent. One of the debt settlement's conditions was to keep Alvarion's Nasdaq listing, although it allows relegation to the Pink Sheets provided that the company maintains a minimum market cap. When the debt settlement is approved, Valley Telecom will assume Alvarion's public platform and transfer its activity. Valley Telecom's current status prevents it from appealing the Nasdaq panel's decision.
"I will try to resume the Nasdaq listing," Pinievsky promised today. "We'll bring in additional technologies and run projects through the stock market shell."
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2014
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