OCZ files for bankruptcy while Toshiba makes purchase offer

Today the OCZ Technology Group, Inc., made clear their state of affairs, and things are looking bleak. The creators of high-performance solid state drives for computers of all sorts noted that they'd be filing for bankruptcy and that Toshiba had entered an offer to purchase their assets. These two companies have already substantially completed negotiations and OCZ noted that they believed all material terms had been agreed to.

The folks at OCZ suggest that if they are not able to agree to final documentation with Toshiba, that they would truly move for full bankruptcy and sell assets in a liquidation fashion. At the moment, OCZ has received notice from Hercules Technology Growth Capital, Inc., that they'd be taking exclusive control over their Silicon Valley Bank and Wells Fargo Bank depository accounts.

As OCZ is not, apparently, in compliance with a major loan and security agreement with Hercules, the latter company is effectively cutting out on their end of the deal. This action took place because OCZ was not inside certain operating ratios and covenants in their loan agreement with Hercules.

Judging solely by the amount of coverage OCZ has received in the press over the past year for their consumer products and other comparable content, it should come as no surprise that the company isn't doing all that well in the industry. Have a peek at SlashGear's OCZ tag portal to see how the company trod toward this point in history and see if you can figure out where they'll go from here!

VIA: Market Watch