11:14 AM EDT, 04/03/2024 (MT Newswires) -- Casa Systems ( CASA ) said Wednesday it has begun a court-supervised sales process of its businesses and that it has reached agreements to sell its 5G mobile core and RAN assets to Lumine Group and its cable business to Vecima Networks.

To facilitate the asset sales, Casa said it filed voluntary petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware. Casa said it has asked the court for approval to complete the sale of the assets to Lumine by end-April.

Under a stalking-horse asset purchase agreement with Vecima, Casa also asked the court to approve procedures for requesting additional bids and to set an auction for mid-May, it said.

"Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets," said Casa Chief Executive Michael Glickman.

"We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers," Glickman said.

Casa shares were down by more than 80% in recent trading.

Price: 0.05, Change: -0.20, Percent Change: -78.85