Sale of Hytera U.S. Subsidiaries Delayed, Stay Lifted
Wednesday, September 09, 2020 | Comments

A sale of the U.S. subsidiaries of Hytera Communications that was expected to be approved by a bankruptcy court on Aug. 27 was delayed. Additionally, the court approved a stipulation between Hytera and Motorola Solutions that lifted a stay the bankruptcy case put on other legal proceedings between the two entities.

Hytera’s two U.S. subsidiaries, Hytera America and Hytera America (West), filed for Chapter 11 bankruptcy in May. In filing for bankruptcy, the two companies cited large costs from a lawsuit brought against them by Motorola Solutions.

In February, a jury for the U.S. District Court for the Northern District of Illinois determined that Hytera and its subsidiaries had used Motorola’s proprietary trade secrets in Digital Mobile Radio (DMR) products and awarded Motorola $764.6 million in damages.

During bankruptcy proceedings, Hytera America set up a sale of the U.S. subsidiaries’ assets to a newly formed Hytera entity and asked the court to set up an auction. When that auction led to no higher bids, Hytera asked the court to approve the sale to the new Hytera entity. That sale was delayed by the court. Court documents have not yet identified a new date for the sale’s approval.

Following the jury’s verdict in the Illinois court, Motorola filed a motion to implement a permanent injunction against Hytera that would prevent it from selling or distributing products that were determined to use Motorola’s trade secrets. Under bankruptcy law, a stay was placed on those proceedings.

Motorola filed a motion with the bankruptcy court asking the court to dismiss the filings or at least lift the stay on the Illinois proceedings. Motorola argued that Hytera was essentially trying to “launder” the assets of its subsidiaries and it was using the stay of the Illinois to continue selling products that used Motorola trade secrets.

The two parties agreed to a limited lifting of the stay caused by the bankruptcy at the end of August that would allow post-trial proceedings in the Illinois case to continue. The court approved that stipulation.

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Comments
On 9/16/20, Dean Mckinley said:
Motorola got what they wanted let Hytera start fresh. Motorola isn t the best out there anymore. Other players have better radios and Motorola s Quality has gone downhill in recent years. Cutting corners in quality.


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