Alvarion says Silicon Valley Bank seeks receiver for loan
JERUSALEM (Reuters) - Israeli wireless broadband technology firm Alvarion Ltd said Silicon Valley Bank had requested a Tel Aviv court to enforce liens and appoint a receiver to collect a loan issued to the company.
US-listed shares of the company fell 54 percent to 48 cents. Trading in the company's Tel Aviv-listed shares were halted earlier after Israeli newspapers reported that the bank had sought a receiver for Alvarion over a $3 million debt that the bank says the company cannot repay.
"The court has prohibited any disposition of Alvarion's assets, whether direct or indirect, until and unless the court decides otherwise," Alvarion said in a statement late on Thursday.
Further court hearings are scheduled for July 15.
Alvarion has struggled to gain a foothold in the long-range wireless internet sector with its WiMax products and earlier this year sold its broadband wireless access business to Telrad Networks for $6 million.
Alvarion posted a 45 percent drop in first-quarter revenue to $8.5 million and posted a loss of 51 cents per share excluding one-off items.
(Reporting by Steven Scheer; Additional reporting by Neha Alawadhi in Bangalore; Editing by Don Sebastian)
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