Alvarion Ltd, a wireless broadband technology firm in Israel said that Silicon Valley Bank requested for a loan receiver for Alvarion to receive its loan. The Silicon Valley Bank asked a Tel Aviv court to enforce liens and collect the loan.
The company shares listed in the US market fell 54 percent to 48 cents. The shares of the company listed in the Tel Aviv market were halted after Israeli newspapers reported the bank's statement. A loan receiver will still be appointed for Alvarion. Silicon Valley Bank said that the company has a US$3 million debt that it cannot repay.
In a statement released late Thursday, Alvarion said that the court has prohibited any disposition of company assets. Direct or indirect sale of assets were not allowed until further decision was made. Court hearings were scheduled July 15.
Alvarion has struggled to establish a foothold in the wireless internet industry. Earlier this year, the company's wireless broadband access unit was sold to Telrad Networks for US$6 million.
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