All Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR) employees have received layoff notices as part of the receivership process, with the objective of rehiring as many of them as possible. Despite the notifications, sources inform ''Globes'' that many employees, including all of the employees at Alvarion's premesis in Yokne'am (the former employees of Wavion Networks), turned up for work as usual, in order to support efforts to find an investor.
Alvarion's employees have asked the court to order Silicon Valley Bank to transfer $1 million to the receiver's account within 24 hours. They said that the company's $200,000 in cash was enough to employ only 17 of its 160 employees before the receivership order was issued. "The employment of only 17 employees is liable to cause the company's customers to cancel contracts they have signed with the company and/or cause problems in collecting money from the company's customers," states the motion.
The motion adds that such a small workforce "is liable to jeopardize the sale of the company as a going concern as part of the receivership, which could result in the proceeds of the sale of the company as part of the receivership proceedings, will be substantially less that the possible proceeds obtained if most of the company's employees before the receivership continue to work."
The employees also note that Silicon Valley Bank is a secured creditor, and it filed the petition to put Alvarion in receivership, and if it does not agree to transfer the money, 140 employees will lose their jobs causing hardship to 140 families.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2013
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