Today we reported that OCZ stock trading was suspended. A couple of hours later the company announced it will file for bankruptcy. Toshiba has offered to acquire the company's assets. At the moment OCZ shares are down more than 70% and worth $0.16
OCZ's biggest investor, Hercules Technology Growth Capital has pulled the plug and taken over exclusive control over OCZ's depository accounts. Hercules provided a loan to OCZ and because OCZ is not in compliance with certain of the operating ratios and covenants in the loan agreement, the decision was made. Shareholder seems to agree with Hercules as its shares were up 0.06% at the moment of writing.
Toshiba has offered to take over OCZ's assets and OCZ reports both companies have substantially completed negotiations on an asset purchase agreement. Toshiba has agreed to preserve the value of the business, including retention of OCZ employees. If no agreement with Toshiba will be finalized, OCZ will likely file a petition for bankruptcy and liquidate.
Toshiba taking over OCZ's assets comes at no surprise, our friendly colleagues from TweakTown reported about rumors almost two months ago.
Read more about OCZ and their financial troubles in our OCZ news archive. Discuss this in our SSD Forum.
