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Powerwave Technologies, Inc. (NASDAQ:PWAV) was among the top three losers on Wall Street after applying for bankruptcy protection. Wireless equipment maker Powerwave Technologies (PWAV), is known for an array of devices including so-called “pico cells” for long-term evolution, or LTE, cellular coverage, tower-mounted amplifiers, and digital radios for WiMax broadband wireless networks. Powerwave Technologies Inc., a maker of antennas and amplifiers for wireless communications, filed for Chapter 11 bankruptcy protection amid a steep sales slump after losing money in four of the past five years. On January 28, 2013, the Company filed a voluntary petition for relief (the “Bankruptcy Filing”) under chapter 11 of title 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) case number 13-10134. The Company’s foreign and U.S. subsidiaries (collectively, the “Non-Filing Entities”) were not part of the Bankruptcy Filing. The Company will continue to operate its businesses as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. The Non-Filing Entities will continue to operate in the ordinary course of business. The Company intends to use the protections afforded under Chapter 11 the Bankruptcy Code to, among other things, facilitate a reorganization or sale of the Company or its assets. Powerwave fell as much as 82 percent after the filing. It closed at 8 cents after falling 74 percent for the day in trading in New York. Shares have lost 96 percent of their value over the past 12 months. In the first nine months of 2012, revenue dropped by two-thirds, to about $128 million, from the year before. The company’s loss deepened to $153 million from $35 million. The company based in Santa Ana, California, listed debt of $396 million and assets of $213 million in a Chapter 11 petition filed in Wilmington, Delaware. The board found that bankruptcy is “in the best interest of the company, its creditors and other parties,” Powerwave said in the petition. Most people assume that bankruptcy means liquidating all of a debtor’s nonexempt assets and distributing the proceeds among his creditors. But, chapter 11 of bankruptcy is different. John M.Crane, P.C.1 says “a case files under chapter 11 of the United States Bankruptcy code is frequently referred to as a “reorganization” bankruptcy. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. Chapter 11 allows a debtor to enter into an agreement with creditors under which all or a part of the business continues. The debts of the business are restructured so as to allow the debtor to continue his business operation.” (References: Chapter 11, http://www.johncranebankruptcy.com/chapter_11_bankruptcy) Any business or individual may file for Chapter 11 bankruptcy protection. Businesses include anything from a sole proprietorship to a national corporation. Upon the filing of the Chapter 11 bankruptcy petition, the debtor, be it a business or an individual, becomes a debtor and debtor-in-possession. The debtor-in-possession has the majority of the rights and responsibilities of a bankruptcy trustee. The only right not available is the right to compensation. The debtor-in-possession can file lawsuits to avoid transfers of money to creditors, obtain loans for the debtor, and accept or reject contracts. In February, Powerwave announced a restructuring plan designed to cut manufacturing costs and conserve cash, in part by firing about 60 workers. That was followed in September by the announcement that 120 people would be fired and some offices shut down. For any queries or suggestions, you can contact bankruptcy attorney, John.M.Crane,P.C. at (212) 748-9477. You can visit the website http://www.johncranebankruptcy.com/ Disclaimer: The contents of this page are general in nature. Please use your discretion while following them. The author does not guarantee legal validity of the tips contained herein. John M. Crane, P.C.: John M. Crane, Esq. has been licensed since 1997 and is a member of the National Association of Consumer Bankruptcy Attorneys. John M. Crane, P.C. is a full-service law office with a practice focused on Foreclosure Defense and Consumer Bankruptcy. The offices of John M. Crane, P.C. are located at PortChester, Queens, White Plains and New York. For further information, contact John M. Crane, Esq. directly at (212) 748-9477. You can visit the website http://www.johncranebankruptcy.com/
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