Optibase moves to buy Media 100 assets

Optibase has announced the negotiation of a debtor-in possession loan for Media 100 and the sale to Optibase of substantially all of the assets of Media 100 in a pre-packaged bankruptcy proceeding, under title 11 of the United States Bankruptcy Code.
There is no binding agreement between the company and Media 100 for the transaction and any such future agreement and sale would be subject to various conditions, including approval by the courts in Media 100's Chapter 11 case. The parties are under no obligation to pursue or complete the transaction unless and until they have executed a definitive agreement and the courts have approved the transaction.
However, the deal would allow Media 100 to continue to develop, sell and support its 844/X editing-compositing systems, newly-introduced Media 100 HD system, Media 100 i, and other content design products.
“Media 100 has created differentiated and valuable technology that we believe can flourish with the right backing,” said Tom Wyler, Chief Executive Officer and Chairman of the Board of Optibase. “If the asset purchase by Optibase is approved by the bankruptcy court, the advanced products that Media 100 has developed would represent a growth opportunity for Optibase.”
John Molinari, president and chief executive officer of Media 100, said: “With an extremely strong balance sheet, Optibase gives Media 100 the financial wherewithal to continue engineering and marketing 844/X and Media 100 HD and compete aggressively in the market.
“The deal is timed well to support us just as we begin first shipments of our new 844/X Version 3 release and prepare to deliver our first implementation of 844/X technology on the Apple Power Mac G5 platform—Media 100 HD.”
Subject to various conditions precedent which are set forth in the term sheet, and which have not yet been satisfied, including negotiation and completion of final documentation, issuance of appropriate orders and approvals by the bankruptcy court, Optibase intends to provide up to $1 million in a debtor-in-possession loan, and buy substantially all the assets of the Company for $2.5 million (less the amount of any debtor-in-possession funding advanced).
The debtor-in-financing would be used to enable Media 100 to meet its commitments to its employees, to fund vendor obligations going forward, and to assure uninterrupted business operations.
(GB)