SANTA CLARA, Calif., April 27 /PRNewswire/ -- Riverstone Networks announced today that it has completed the sale of its business to Lucent Technologies pursuant to the Asset Purchase Agreement signed by the parties on February 7, 2006 and approved by the U.S. Bankruptcy Court on March 23, 2006. The company reported that it received $196.6 million from Lucent, and an additional $10 million is being held in escrow for 120 days pending calculation of the final net assets transferred to Lucent. Substantially all of Riverstone's employees, including Riverstone CEO Oscar Rodriguez and other senior executives, will be employed by Lucent immediately after the transaction closes.
The Riverstone Networks corporate entity will continue to exist as the company prepares its plan of liquidation. Under the terms of the Lucent Asset Purchase Agreement, Riverstone gave up the rights to use the Riverstone Networks name and all other marks. Going forward the company will operate as RNI Wind Down Corporation. The company's website will be http://www.rniwd.com/.
RNI Wind Down will be led by Noah D. Mesel and Michael Overby, who will oversee a small staff that will remain to wind up the company's U.S. and international corporate affairs.
Contact:
Michael Overby
Interim CFO
408-878-6500
Noah Mesel
Senior Vice President & General Counsel
408-878-6500
Howard Kalt
Kalt Rosen & Co.
415-397-2686
