I am reading Liar’s Poker by Michael Lewis for maybe the 4th time, and it is as interesting and funny as it was in the 1st time.
What caught my eye this time is a review printed on the very first page:
“Makes the bond-trading business look like a cross between Animal House and Greed Incorporated… Lewis recounts incidents that should make customers stuff their money in mattresses.” – The Washington Post
That was the 80’s, which I guess is enough time for the masses to get their money out of the mattresses and give it to the wrong people (again).
As I am in Japan, I am having a problem which I have to figure out: What if you don’t have a mattress. As we sleep in the traditional Japanese way, futons over Tatami, it is impossible to hide the money there. I need to figure out what is the traditional Japanese way of stashing.
With this new funding, we believe that Airspan will be well positioned to weather the current economic downturn and to benefit from some of the current initiatives in our industry. After a long process wherein we looked at many strategic alternatives, we believe the new funding from Oak Partners represents the best path forward for Airspan and our stakeholders.
Before entering into the Purchase Agreement with Oak, the Company conducted an extensive and lengthy strategic review process overseen by a special committee of independent directors, which retained Stephens Inc. as its financial advisor in February 2009 to assist with the process. While extensive negotiations were undertaken with several parties, no agreements could be reached on terms acceptable to the Special Committee. Following the termination of discussions with one such party on August 10, 2009, Oak made the offer which, following approximately three weeks of negotiations between the parties, resulted in the execution and delivery of the Purchase Agreement on September 1, 2009.
And Airspan’s dire financial situation:
Without the new investment, the Company would deplete its cash resources in the fourth quarter of 2009.
Either Oak Investment partners believe in Airspan’s turnaround or think future negotiations will help them return their investment. It is also obvious that Airspan cannot maintain their current burn rate and in need of extreme measures to save the failing company.
Alvarion IR informed today that the board of directors named Eran Gorev (LinkedIn Profile) as the new CEO and president. Eran is currently the Chief Business Officer at NICE systems (another Israeli Company) and will assume day to day responsibility only in December.
I am sure Eran will face many challenges in his new role; I obviously wish him all the best, especially because we both graduated from the same high school (Eran is 6 years my senior).
Tzvika Friedman, the departing CEO, was probably not very effective in Q3, 09 while I doubt Eran Gorev will manage to change anything by end of Q4, 09. I wonder if this lack of leadership will affect the earning reports.