The final chapter in the story of Proweavers Web Solutions, which shuttered its doors in 2016, has been published.
The story, titled “The Last Days of ProWeavers Web Services”, is a fascinating one.
For many years, the company was the go-to source for web security solutions and has been working on some of the world’s most advanced solutions for decades.
It was also one of the few web companies to survive the dot-com bust, when its revenues collapsed, and it also suffered from the bankruptcy of the internet giant AOL, which was then valued at $1.2 billion.AOL’s problems caused Proweasles Web Solutions to shut down.
In January 2016, it announced it was ceasing operations, saying it had reached the end of its lease and had reached an agreement with AOL for the sale of its remaining assets.
Proweasels management, led by co-founder, John Levenson, had long been trying to sell the company, which he believed would be worth $200 million or more, but was unable to find buyers willing to pay more than $300 million.
He decided to put his company’s assets up for sale.
At the time, Levens team was in the midst of a $2 billion merger with the now-defunct AOL, and there were many unanswered questions about the deal, such as who would buy it and who would own the remaining assets of the company.
Levens also wanted to see the company continue to grow, which led to him deciding that he wanted to buy the company outright.
In the months leading up to the sale, LeVson, his son, and other board members discussed what they wanted to do with Proweavers.
They decided that they would sell the business, but would also give the management the option of selling it in perpetuity or selling the company to a partner or a buyer.
The decision was made to sell it outright, in part because of concerns about how Proweavis would be treated by the bankruptcy court.
The business was to be owned by a private investor and the purchase was made on July 26, 2020.
Leven, who was the sole shareholder, sold the company for $8.8 billion.
Prove it, Proweazers owners said at the time.
We did not sell it for a lot of money, but we sold it for more than we thought we would, because we were confident that the world would be different if we went down and got out of the business.
The company went into liquidation and Leven told the New York Times that Proweaveas management “did not think it was a good idea to continue the business under a cloud.”
He said they were “not sure whether or not the sale was really going to be worth it.”
In January 2021, ProWeavers owners sued Proweans management in the U.S. Bankruptcy Court for the District of Delaware.
In February 2021, a judge ordered Proweaves management to hand over the company’s financial statements and financial statements were released.
ProWeavings management agreed to the release and the court ordered ProWeaves management and Proweazeas management to provide to ProWeazers creditors the information that was requested by the court.
ProWEAVERS management provided the court documents, but said it had already “decided to sell,” and it “would not be able to complete the sale.”
Proweavers shareholders and ProWeaveas employees filed an appeal in the Delaware court.
The appeal court denied Prowebs appeal, ruling that the sale had been made in bad faith.
In a statement, ProWEAVS said the sale “has been made without consideration, which is the essence of bad faith,” and that the bankruptcy judge had no right to “pursue any alternative means of resolving this matter.”
In a press release, Pro WEAVS stated that it has “committed to full compliance with all court orders, including those requiring it to give the court a list of the creditors who owe money to ProWEavings and ProWEaveas, and the names of those creditors.”
The bankruptcy judge agreed to ProweAus release of documents, and Pro WEavs released all of its assets.