OCZ asset sale procedures order entered; auction scheduled for Jan. 15

By Caroline Salls

Pittsburgh, Jan. 3 - OCZ Technology Group, Inc. said the U.S. Bankruptcy Court for the District of Delaware entered the order approving the bid procedures for the proposed sale of its assets on Dec. 23, according to an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, the bid procedures were approved following a Dec. 19 hearing. However, the order was pending, while the parties sorted through final language for changes agreed to just an hour before the hearing, debtors attorney Michael Nestor told the court at the hearing.

Stalking horse bidder Toshiba Corp. has agreed to pay $35 million for substantially all of the debtors' assets, minus a buyer advance amount.

Under the procedures, competing bids are due by 5 p.m. ET on Jan. 13 and must include a cash payment of at least $35 million, plus a $1.3 million overbid amount.

If more than one qualified bid is received, an auction will be held on Jan. 15.

Bids at auction must be in minimum increments of $100,000.

If Toshiba is not the successful bidder at auction, OCZ must pay it a $700,000 termination fee and reimburse up to $500,000 of its expenses.

A sale hearing is scheduled for Jan. 16.

OCZ, a Sunnyvale, Calif.-based producer of computer memory and components, filed for bankruptcy on Dec. 2. The Chapter 11 case number is 13-13126.

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