After getting into trouble with loans, OCZ Technology Group has announced that they have reached an agreement to transfer their assets to the Toshiba Corporation. This news came only five days after OCZ announced its plans to file for bankruptcy. The recent decision means Toshiba will acquire essentially all of OCZ’s assets under a chapter 11 bankruptcy proceeding. OCZ failed to comply with the terms of their loans, resulting in the decision to file for bankruptcy.
Who is OCZ?
OCZ is a computer hardware manufacturer based out of San Jose, California. They began business in 2002 and are known for their production of video cards, USB drives, and SSDs. The beginning of 2013 saw the company’s revenue drastically decline from $88.6 million to $33.5 million in a matter of months. OZC responded by securing loans from Hercules Technology Growth Capital. The loans brought a steep rate of 15%. OCZ used the company itself as collateral for the loans, and after failing to meet the terms of the loans, Hercules took control of the company.
After Hercules took control of the accounts, OCZ announced their intention to file for bankruptcy. That’s when Toshiba moved in and expressed their interest in acquiring OCZ’s assets in a chapter 11 bankruptcy proceeding.
It is believed that the bankruptcy proceeding will result in Toshiba acquiring all of the company’s assets. This includes OCZ’s software, firmware, accounts, and SSD controllers. The sale will be subject to standard bankruptcy auction proceedings and will require court approval. Toshiba believes the sale will close in a matter of 60 days or less.