OCZ Technology expects to file bankruptcy to sell assets to Toshiba

By Caroline Salls

Pittsburgh, Nov. 27 - OCZ Technology Group, Inc. expects to file bankruptcy as a condition to Toshiba Corp.'s offer to acquire substantially all of its assets, according to a news release.

OCZ said it received notices on Nov. 5 that Hercules Technology Growth Capital, Inc. took exclusive control of its depository accounts at Silicon Valley Bank and Wells Fargo Bank, NA.

Hercules and the company are parties to a loan and security agreement. OCZ said it is not in compliance with some of the operating ratios and covenants in the loan agreement.

According to the release, Toshiba and OCZ have substantially completed negotiations on an asset purchase agreement. The agreement is subject to the preservation of the value of the business, including the retention of employees, the negotiation and execution of definitive documentation and the filing of bankruptcy petitions by the company and some of its subsidiaries.

The agreement is also subject to Toshiba's offer being accepted by the bankruptcy court as the highest and best offer after an auction process and other customary closing conditions.

OCZ said it expects to file a bankruptcy petition shortly after completing final documentation with Toshiba and Hercules.

If it is not able to agree to final documentation with Toshiba, the company said it expects to imminently file bankruptcy and liquidate.

OCZ is a Sunnyvale, Calif.-based producer of computer memory and components.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.