It was just a few days ago when we brought you word that OCZ Technology Group has filed for bankruptcy, and if all were to be in good order, Toshiba could very well be the one to pick up OCZ’s assets afterwards. Well, while seeing a company fall victim to bankruptcy is always not a pretty sight, even more so when you have had some fond memories of the products/services that the company has rolled out or provided in the past, it is nice to hear that Toshiba has ambled along to acquire just about all of OCZ’s assets in a Chapter 11 bankruptcy proceeding – with an exchange of $35 million.
Of course, this move has been agreed upon by both parties in principle, but it happens to be subject to customary regulatory approval still. Both Toshiba’s and OCZ’s board of directors have already approved of this buyout offer. Ralph Schmitt, CEO of OCZ, mentioned, “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. We have been working diligently on this partnership with Toshiba and we believe that this is the best outcome under our current corporate conditions.”