AV Magazine AV Magazine Optibase has provided financial support to Media 100 in the hope of acquiring its assets and keeping Media 100 activity intact as a unit in Optibase.
The two companies announced on March 22 that they have executed a definitive loan agreement to provide up to $1 million of secured debtor-in-possession financing, and an asset purchase agreement which, subject to court approval, calls for Optibase to buy substantially all the assets of Media 100 for 2.5 million (less the amount of any funding advanced).
Media 100 is amenable to the purchase and has filed a voluntary petition for reorganisation under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Massachusetts. The sale will be subject to various conditions, including approval by the court in the Chapter 11 case.
'Following approval by the Court, Optibase intends to keep Media 100 activity intact as a unit in Optibase in order to continue the development, sales and support of the Media 100 products,' says Tom Wyler, ceo and chairman of the board of Optibase. 'We strongly believe in the capabilities of the Media 100 team of employees and believe that with our financial strength the Media 100 line of products will be able to realise their potential.'
'The Optibase deal gives Media 100 strong financial support during the Chapter 11 proceeding in order to drive the market penetration of 844/X Version 3 and the debut release of Media 100 HD,' says John Molinari, president and ceo of Media 100.
The companies say the acquisition is subject to a number of contingencies and in the event that the transaction is not completed Media 100 may be required to cease operations.
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