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OCZ completes asset purchase agreement with Toshiba under Chapter 11 bankruptcy

Written by Andre Yoskowitz (Google+) @ 03 Dec 2013 21:19 User comments (2)

OCZ completes asset purchase agreement with Toshiba under Chapter 11 bankruptcy OCZ Technology, just days after announcing bankruptcy, has announced that they have signed an asset purchase agreement with Toshiba where the company will buy all of OCZ's assets in a chapter 11 bankruptcy proceeding for $35 million.
Under the agreement, Toshiba will acquire OCZ's client and enterprise SSD businesses, and OCZ will "continue to operate and serve existing and future customers during this process."

Throughout the process, Toshiba has also agreed to provide "DIP (Debtor-in-Possession) financing to ensure that there is adequate capital and flash supply to support the business during the contemplated sale period."

"Over the past year, OCZ has dealt with numerous issues which have stressed the company's capital structure and operating model, posing a challenge to achieving near term profitability. The combination of NAND flash supply constraints and credit issues have impacted our ability to satisfy the demands of our customers; this combined with increased pricing pressure in our industry have contributed to our on-going operating losses. On an operational basis, we completed a complex investigation, several restructurings and a multi-year restatement that added significantly to our working capital requirements," stated Ralph Schmitt, CEO of OCZ. "We have been working diligently on this partnership with Toshiba and we believe that this is the best outcome under our current corporate conditions."

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2 user comments

14.12.2013 20:46

SUCK!

OCZ supplied my memory and it's awesome. Then they ditched RAM production completely, concentrating on SSD only. That move alone was suspect and now in retrospect, it makes sense. Their original SSDs were crappy as Hell and riddled with problems from lack of ingenuity but hope was kept alive.............until now.

Ba bye OCZ. You will be missed.

Too bad Toshiba is buying up tech. They suck balls too. Lousy products except an occasional laptop they put out.

25.12.2013 22:19

Nope, even the laptops suck now.


Its a lot easier being righteous than right.


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