Powerwave Lender's Cash Grab Prompted Ch. 11, Atty Says

Law360, Wilmington (January 31, 2013, 8:14 PM EST) -- Powerwave Technologies Inc. was tipped into a free-fall bankruptcy by a secured lender that swept $8.3 million of its cash collateral from Powerwave’s accounts without notice, an attorney for the wireless equipment maker said Thursday.

At a first-day hearing in Delaware bankruptcy court, Powerwave attorney Mark Thomas of Proskauer Rose LLP described the company’s filing Monday as a “splat into Chapter 11” after lender P-Wave Holdings LLC moved Friday to recoup cash after declaring a default on a $35 million loan.

“We contend that all the...
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