LONDON Struggling wireless chip and systems company NextWave Wireless Inc.(San Diego, Calif.) is closing its Israel-based subsidiary, GO Networks, as part of its global restructuring.
GO Networks, (Tel Aviv, Israel) is a supplier of wide-area Wi-Fi network equipment.
NextWave said Monday (Sept. 29) it had filed a request in Israel to seek bankruptcy protection for the subsidiary.
Earlier this month, NextWave said it was working to divest its network infrastructure subsidiaries to conserve cash and narrow its business focus in conjunction with the $100 million in new debt financing agreed by Avenue Capital Management II, L.P. and SOLA.
The company said that through a combination of cost reduction actions, the planned divestiture of its infrastructure businesses and the sale of other business assets, the $100 million in net proceeds from the financing is projected to fund its business operations into 2010.
NextWave suggests the winding up of GO Networks would not impact the group’s other subsidiaries, and "is designed to provide an orderly process for the discontinuance of operations and to advance the group’s divestiture and cost reduction strategy."