The chapter 7 trustee of Wave Systems Corp. (“Wave”) has run a sale process.  ESW Capital, LLC (“ESW”) has submitted the highest and best offer for Wave’s assets.  ESW’s offer contemplates converting Wave’s chapter 7 case to an operating case under chapter 11 and acquiring the business through a chapter 11 plan process.  If the conversion to chapter 11 is approved, it is expected that the Wave business will ramp back up in chapter 11 such that customer service and support will return to normal levels.  The chapter 7 trustee believes that key individuals from Wave will be retained to provide such service and support.

If a chapter 11 plan process is not successful, ESW shall purchase Wave’s business pursuant to sale order.  While there are certain circumstances in which ESW is not obligated to close under a plan process or sale order, the chapter 7 trustee believes these circumstances are unlikely and contemplate the receipt of a higher and better offer.  ESW’s offer and the Bankruptcy Court’s approval of such offer as the highest and best offer for Wave’s business can be found at Docket No. 110, Case No. 16-10284 (KJC) (Bankr. D. Del.).

The chapter 7 trustee can be contacted at dcarickhoff@archerlaw.com