Another chapter in Aviza's troubles
Aviza Technology and its subsidiaries, Aviza, Inc. and Trikon Technologies, Inc. have filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. As a result of the global economic recession, demand for semiconductor manufacturing equipment has declined dramatically. Over the past several months, Aviza has undertaken significant efforts to reduce its expenses and working capital requirements in response to these unprecedented market conditions. These efforts have included significant work force reductions, executive salary cuts, mandatory time off for all of the company’s employees and significant decreases in non-labor expenses.
At the same time, the company has been working with Needham & Company, LLC to review and pursue financial and strategic options for the company to maximize value on behalf of all of the company’s stakeholders, including merging with or into another company, a sale of all or substantially all of the company’s assets, and the liquidation or dissolution of the company through bankruptcy proceedings. The continuing declines in orders from and shipments to customers and related cash collections, the recent acceleration of the company’s borrowings under its secured credit facility, and the company’s inability to identify new sources of liquidity have caused the company to seek bankruptcy protection in order to better manage its operations through an orderly restructuring process.
Prior to the commencement of the Chapter 11 case, Aviza executed a nonbinding letter of intent to sell certain of its assets and businesses to Sumitomo Precision Products Co., Ltd. (“SPP”). Through the bankruptcy proceedings, the company intends to pursue its proposed strategic transaction with SPP and effectuate other significant asset sales in order to maximize value on behalf of all of the company’s stakeholders. The company expects to continue essential operations, including product support, service and warranty programs, during this process.
“We have been working hard to find a buyer that would best leverage our products and provide on-going support to our customers,” commented Jerry Cutini, Aviza’s President and CEO. “Through this voluntary bankruptcy process, we can continue to operate our business and pursue an orderly transition to SPP with minimal impact on our customers and employees.”
