By Mardi Balgochian Scalise, Lightwave Web Editor
Nanovation's planned restructuring continues after its recent debacle of having to lay off more than two-thirds of its employees and file Chapter 11 reorganization. However, the company is determined to get back on track.
An undisclosed "several million" dollars has been secured from high-net common and preferred shareholders allowing operations to continue for the next 100 days with one-third of its original employee base.
Apparently, investors feel there is significant value in the company. After the 100 days, the company hopes to emerge from bankruptcy with additional funds being infused back into the company in order to regain normal operations. Although not full-speed ahead, the company is still trying to forge its way forward.
With what's left of its workforce, Nanovation is concentrating on two Indium Phosphide and two Silica products. The company has been given every indication to keep working for Lucent and Motorola on projects that were already underway, and it still expects to deliver photonic integrated circuits (PICs) in the third and fourth quarters of this year.
Salomon Smith Barney and Nanovation's customers have pledged to stay by the company's side during this restructuring process. Having essentially blocked the last round of funding by delaying approval of contributors, Stamford International, Nanovation's major shareholder, hasn't given Nanovation any indication of where it stands regarding the recent developments. Nanovation is also Stamford's primary asset. Stamford could not be reached for comment.
Nanovation entered Chapter 11 with $48 million in assets, $28 million in liabilities and strongly believes a successful restructuring is a strong possibility.