Ethernity Networks Ltd Approval of settlement proposal by creditors (3089Z)

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RNS Number : 3089Z

Ethernity Networks Ltd

11 January 2024

11 January 2024

ETHERNITY NETWORKS LTD

("Ethernity" or the "Company")

Approval of settlement proposal by creditors

Ethernity Networks Ltd (AIM: ENET.L; OTCMKTS: ENETF), a leading supplier of networking processing semiconductor technology for virtualised networking appliances, announces an update on the Company's ongoing temporary suspension of proceedings ("TSP") process.

Further to the announcement on 04 January 2024, the Company is pleased to announce that it has now received approval of the proposal for the settlement of creditors under the TSP (the "Settlement Proposal") from all three creditor groups. Therefore, the Company has submitted the Settlement Proposal to the Court in Lod ("Court") to seek its approval. The Court is expected to schedule a court hearing to consider and approve the Settlement Proposal. Should the Settlement Proposal receive Court approval, the Company will exit the TSP process.

Under the Settlement Proposal, valid creditors will be repaid in full over a period of 12 months, in four quarterly instalments, with the first payment being made within 90 days of exiting the TSP. Guaranteed and Priority Creditors would have priority for repayment, followed by General Creditors. According to the Company's financial registers, the total creditor balance subject to the Settlement Proposal is US$1.6 million.

For further information, please contact:

 
 Ethernity Networks Ltd                       Tel: [phone] 
  David Levi, Chief Executive Officer 
 
  Allenby Capital Limited (Nominated Adviser   Tel: [phone] 
   and Joint Broker)                            5656 
  James Reeve / Piers Shimwell (Corporate 
   Finance) 
   Amrit Nahal / Stefano Aquilino (Sales and 
   Corporate Broking) 
  Peterhouse Capital Limited (Joint Broker)    Tel: [phone] 
                                                0930 
  Lucy Williams / Duncan Vasey / Eran Zucker 
 

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January 11, 2024 02:00 ET (07:00 GMT)