Andre Yoskowitz
3 Dec 2013 21:19
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."