Cable Services Company Casa Sells Cloud Unit to Fund Bankruptcy
- Lumine Group wins quick auction with $32 million bid
- Judge says unusual process shouldn’t be bankruptcy precedent
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Casa Systems Inc., which makes software and other products for cable television companies, won court approval to sell its cloud-based unit for $32.3 million to Lumine Group US Holdco Inc. in order to fund the rest of its bankruptcy case.
US Bankruptcy Judge Karen Owens agreed with the company that without the sale, Casa would suffer a cash crisis next week and would have to furlough workers. Owens said she was initially skeptical of the unusually quick sale because it was designed to raise cash to pay for the reorganization case. Typically, a company arranges an emergency loan just before it files bankruptcy and then uses the money to keep operating while selling assets and reorganizing.