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20 Dec 2023 14:11
20 December 2023
ETHERNITY NETWORKS LTD
("Ethernity" or the "Company")
Extension to and update on TSP process
Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of networking processing semiconductor technology ported on field programmable gate arrays ("FPGAs") for virtualised networking appliances announces an update on the Company's Temporary Suspension of Proceedings ("TSP") process.
On 30 October 2023, the Company announced that it had been granted an initial extension of the TSP process until 31 December 2023. The Court in Lod (the "Court") has today granted a further extension to the TSP process, until 30 January 2024.
The two main objectives of the TSP process are:
· to revive and recover the Company's ongoing operations as a going concern; and
· to enable Ethernity to agree a settlement with its creditors for the repayment of the Company's outstanding debts.
The Company has been focused on achieving those two objectives during the TSP process and, as announced on 19 December 2023, together with the cash collection during Q4 2023, the Company has secured sufficient funds which will enable it to continue with its ongoing operations, service existing client contracts, capitalise on new opportunities and support the Company's growth.
In respect of reaching an agreement with its creditors, the Company has submitted a proposal for settlement of the debts (the "Settlement Proposal") to the TSP settlement manager. Subject to the approval of the Settlement Proposal by the settlement manager and the Court, a meeting of creditors of the Company will be convened to seek their approval of the Settlement Proposal.
The extension to the TSP process is expected to provide the Company with sufficient time to convene the creditors meeting within the TSP period. Subject to the approval of the Settlement Proposal at the creditors meeting, the Board anticipates that the Company will be able to successfully exit the TSP process prior to the end of January 2024 with a strong cash position which will enable the continued operations of the Company. A further announcement will be provided once the creditors meeting has been convened.
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