Wednesday, November 27th 2013
OCZ Filing for Bankruptcy, Announces Offer from Toshiba to Purchase Assets
OCZ Technology Group, Inc., a leading provider of high-performance solid state drives (SSDs) for computing devices and systems, today announced that on November 25, 2013, it received notices that Hercules Technology Growth Capital, Inc. ("Hercules") took exclusive control of the Company's depository accounts at Silicon Valley Bank and Wells Fargo Bank, National Association. As set forth in the Company's recent SEC filings, Hercules and the Company are parties to a loan and security agreement. As previously reported, the Company is not in compliance with certain of the operating ratios and covenants in the loan agreement. As a result of such action and pursuant to Hercules' written instruction, the depository institutions disbursed the cash in the Company's respective accounts to accounts under the control of Hercules.
The Company has received an offer from Toshiba Corporation to acquire substantially all of the Company's assets in a bankruptcy proceeding. The parties have substantially completed negotiations on an asset purchase agreement and OCZ believes that all the material terms have been agreed to.
The agreement is subject to various conditions: the preservation of the value of the business, including the retention of employees, the negotiation and execution of definitive documentation, the filing of bankruptcy petitions by the Company and certain of its subsidiaries, Toshiba's offer being accepted by the bankruptcy court as the highest and best offer under the circumstances after an auction process conducted under the relevant provisions of the United States Bankruptcy Code, and other customary closing conditions. The Company expects to file a petition for bankruptcy shortly after completing final documentation with Toshiba and Hercules, and to conduct the court-supervised auction process to attempt to maximize the value of the Company's assets and operations in an orderly process. More details will become available when the Company files its petition for bankruptcy.
If the Company is not able to agree to final documentation with Toshiba, the Company expects to imminently file a petition for bankruptcy and liquidate.
The Company has received an offer from Toshiba Corporation to acquire substantially all of the Company's assets in a bankruptcy proceeding. The parties have substantially completed negotiations on an asset purchase agreement and OCZ believes that all the material terms have been agreed to.
The agreement is subject to various conditions: the preservation of the value of the business, including the retention of employees, the negotiation and execution of definitive documentation, the filing of bankruptcy petitions by the Company and certain of its subsidiaries, Toshiba's offer being accepted by the bankruptcy court as the highest and best offer under the circumstances after an auction process conducted under the relevant provisions of the United States Bankruptcy Code, and other customary closing conditions. The Company expects to file a petition for bankruptcy shortly after completing final documentation with Toshiba and Hercules, and to conduct the court-supervised auction process to attempt to maximize the value of the Company's assets and operations in an orderly process. More details will become available when the Company files its petition for bankruptcy.
If the Company is not able to agree to final documentation with Toshiba, the Company expects to imminently file a petition for bankruptcy and liquidate.
59 Comments on OCZ Filing for Bankruptcy, Announces Offer from Toshiba to Purchase Assets
The reason Toshiba wants OCZ is not just because of its retail presence but because of its other assets. OCZ owns Indilinx (SSD controller manufacturer) and part of PLX (known for its PCIe switches). These are the valuable components of OCZ and will help Toshiba in designing PCIe SSD controllers.
Toshiba will likely kill off all of OCZ's other product lines (PSUs, etc.) due to their marginal profitability and incompatibility with Toshiba's current product portfolio.
the ceo's shady past didn't help the cause, nor did spewing forth dozens of terrible ssd line ups.
They should have kept their DRAM production going. at least then they could gouge the enthusiasts whenever a new ram version arose.
Good riddance OCZ.
Terrible company, I hope RyderOCZ finds himself a better company to support. and that's all.
I never used them but the PSUs seemed to be fine too, being made by PC Power & Cooling and all that.
I only ever purchased OCZ drives in the past (until just recently when I bought a Samsung 840 EVO). Out of the 12 or so I bought (for myself and friends), only one was DOA and all others are still working.
So sad no, but it wont help prices to get lower.
:toast:
At any rate, I hope whomever ends up with OCZ can fix the problems with OCZ's manufacturing and keep the company open. I mean, everyone working at OCZ is essentially laid off with a month to go until Christmas. Kinda shitty IMO.
I think their vertex 3/Agility3 problems really caught up with them, when there were other good alternatives like Samsung 840, Crucial M4/M5 etc most people jumped ship....
I owned one of their PSU several years ago and it died after a year. Never recommended their PSU's to others for that reason.
Hard drive wise - Im using 4 of their 3TB drives. been around 2-3 months so far and no issues yet.
I also do not see why they dropped the RAM product line, except perhaps competition being too strong (but that was the case on the SSD market too).
They should have tried to expand into graphics cards or so a few years ago, that might have given them more ability to stay afloat and have bought them time to fix their alleged SSD woes.
Older article: www.theregister.co.uk/2013/03/13/ocz_hercules/