Casa Systems, Inc. ( CASA ) shares are tumbling after the company initiated a court-supervised Chapter 11 sale process to achieve value-maximizing sales of its businesses.

The company filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

Casa Systems ( CASA ) inked an asset purchase agreement to sell its 5G Mobile Core and RAN businesses, including Axyom Cloud Native 5G Core Software & RAN Assets, to Lumine Group ( LMGIF ) (OTC:LMGIF). 

The company has asked the Bankruptcy Court for approval to complete the transaction by the end of April.

Apart from this, Casa Systems ( CASA ) entered into a stalking-horse asset purchase agreement to sell its Cable business to an affiliate of Vecima Networks, Inc ( VNWTF ) (OTC:VNWTF). 

The company has asked the Bankruptcy Court to approve procedures for soliciting additional bids and to set an auction for mid-May.

In connection with the sale process, the company inked a Restructuring Support Agreement (RSA) with over 98% of its senior secured lenders, allowing Casa to use its cash on hand and anticipated Cloud/RAN Sale proceeds to fund its operations and Chapter 11 process.

Michael Glickman, Chief Executive Officer, 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.”

“We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.”

Investors can gain exposure to the stock via IShares Microcap ETF and Vanguard Information Tech ETF .

Price Action: CASA shares are down 80.4% at $0.05 on the last check Wednesday.