Axiowave Shuts Down
Axiowave was placed in receivership by a judge's order entered Dec. 28 in Superior Court for the County of Middlesex, Massachusetts. Attorney Stewart F. Grossman of the firm Looney & Grossman LLP was handed control of Axiowave's assets.
Grossman did not return a call for comment, and Axiowave CEO Mukesh Chatter could not be reached for comment.
Axiowave has not filed for bankruptcy protection. Instead, it appears Axiowave has simply closed down, enlisting Looney & Grossman as a third party to sell off the assets. Grossman's job, as described by court papers, will be to "reduce to money [i.e., sell] the Axiowave assets as expeditiously as possible consistent with the best interests of all creditors and stockholders of Axiowave."
Most of Axiowave's tangible assets will be auctioned off on Jan. 19, according to a letter sent by Grossman to creditors. A date hasn't been set for the sale of Axiowave's intellectual property.
Axiowave did mange to make a sale before shutting down. Separate from the assets auctions, "a certain chip" will be sold to a customer "for $20,000 in accordance with Axiowave's prior agreement," according to court documents.
Axiowave had been struggling, having laid off most of its staff last fall. The company also defaulted on the lease on its 100,000-square-foot facility, a situation revealed when landlord Glenborough Realty Trust Inc. (NYSE: GLB) took the unusual step of calling out Axiowave in a press release (see Headcount: Cutting the Fat (Really) and Axiowave Stung by Rent).
— Craig Matsumoto, Senior Editor, Light Reading