Aviza Technology Announces Definitive Agreement to Sell Assets to Sumitomo Precision Products Co., Ltd.
August 13 2009 - 6:21PM
Business Wire
Aviza Technology, Inc., a supplier of semiconductor capital
equipment and process technologies for the global semiconductor
industry and related markets, and certain of its subsidiaries have
entered into a definitive agreement to sell certain assets to
Sumitomo Precision Products Co., Ltd. (“SPP”).
Pursuant to the terms of the agreement, Aviza has agreed to sell
to SPP substantially all of Aviza’s assets related to its system,
service, parts, spares and upgrade businesses for batch thermal
products and technologies, atmospheric-pressure chemical vapor
deposition (“APCVD”) products and technologies, physical vapor
deposition (“PVD”) products and technologies, chemical vapor
deposition (“CVD”) products and technologies, and plasma etch
(“Etch”) products and technologies, as well as its service, parts,
spares and upgrade business for atomic layer deposition (“ALD”)
products and technologies. Aviza’s headquarters and batch systems
manufacturing facilities in Scotts Valley, California and the
property on which they are located are not being sold to SPP
pursuant to the terms of the agreement.
In exchange for these assets, SPP has agreed to pay Aviza a
purchase price comprised of three components:
● approximately $15 million in cash at closing, subject to
certain adjustments;
● a recourse promissory note with an aggregate principal amount
of $10 million that will bear interest at the prime rate, will
mature 18 months after the closing date, will be secured by the
purchased accounts receivable and inventory and certain purchased
intellectual property, will be subject to mandatory monthly
prepayments of principal to the extent that SPP’s collection of
accounts receivable and sales of inventory securing the note,
subject to certain adjustments, exceed $10 million, and will be
guaranteed by SPP; and
● a non-recourse promissory note with an aggregate principal
amount that will be finalized after the closing date but which
Aviza currently expects to be approximately $31.5 million that will
not bear interest, will mature 18 months after the closing date,
will be secured by the purchased accounts receivable and inventory,
and will be subject to mandatory monthly prepayments of principal
to the extent that SPP’s collection of accounts receivable and
sales of inventory securing the note, as adjusted, exceed $20
million. On the maturity date, SPP will have the option of either
repaying the outstanding principal amount of the non-recourse note
in full or returning any remaining uncollected accounts receivable
and unsold inventory to Aviza.
SPP has also agreed to assume certain liabilities of Aviza and
its subsidiaries, including the lease for Aviza’s facility in South
Wales and approximately $5 million of operating liabilities.
Aviza’s board of directors unanimously approved the agreement
and the transactions contemplated by the agreement. The agreement
and the closing of the transactions contemplated by the agreement
are subject to the approval of the United States Bankruptcy Court
and other customary closing conditions. Aviza expects that the
proceeds of the transactions will be used to repay the lenders
under its secured credit facility and its unsecured creditors.
Aviza does not expect that the proceeds from the transactions
contemplated by the agreement will be sufficient to pay its
unsecured creditors in full, and thus Aviza does not believe that
holders of Aviza’s common stock will receive any proceeds from the
transactions contemplated by the agreement.
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements are based on our management’s current
expectations and beliefs and involve numerous risks and
uncertainties that could cause actual results to differ materially
from expectations, including the risk that we may fail to
consummate the transactions contemplated by our agreement with SPP.
You should not rely upon these forward-looking statements as
predictions of future events because we cannot assure you that the
events or circumstances reflected in these statements will be
achieved or will occur. These forward-looking statements include,
but are not limited to, our current expectation about the aggregate
principal amount of the non-recourse note, our belief that holders
of our common stock will not receive any proceeds from the
transactions contemplated by our agreement with SPP and all
statements containing the words “believes,” “expects,” “may,”
“will,” “should,” “seeks,” “intends,” “plans,” “estimates” or
“anticipates” or the negative of these words and phrases or other
variations of these words and phrases or comparable terminology.
Many factors could cause actual results to differ materially from
those projected in these forward-looking statements. We assume no
obligation to update forward-looking statements.
Certain risks and uncertainties related to the Chapter 11
process include risks that:
- these bankruptcy proceedings
could harm our business, results of operations, financial condition
and relationships with our employees, customers and suppliers;
- we may not be able to obtain
court orders on desired terms, including our ability to use
available cash to meet essential ongoing obligations; we may not
have sufficient cash to fund our operations and may not be able to
obtain additional financing on desired terms or court approvals
required for such financing, if any, that may be available; a court
having jurisdiction over our operations may issue orders or
otherwise act or omit to act in a manner that harms our operations;
and we may not timely obtain the requisite approvals of affected
creditors or the bankruptcy court for our intended restructuring
plan, leading to the liquidation of our assets; and
- our common stock will likely
have no future value and may be cancelled in connection with the
bankruptcy proceeding.
About Aviza Technology, Inc.
Aviza Technology, Inc. designs, manufactures, sells and supports
advanced semiconductor capital equipment and process technologies
for the global semiconductor industry and related markets. The
company’s systems are used in a variety of segments of the
semiconductor market, such as advanced silicon for memory devices,
advanced 3-D packaging and power integrated circuits for
communications. Aviza is headquartered in Scotts Valley, Calif.,
with manufacturing, R&D, sales and customer support facilities
located in the United Kingdom, Germany, France, Taiwan, China,
Japan, Korea, Singapore and Malaysia. Additional information about
the company can be found at http://www.aviza.com.
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