As rumored earlier, OCZ Technology Group has announced that it is filing for bankruptcy and that it has also received an offer from Toshiba Corporation to acquire all of OCZ's assets in a bankruptcy proceeding.

According to OCZ's statement, the company had received notices that Hercules Technology Growth Capital, Inc. had taken control of their depository accounts at Silicon Valley Bank and Wells Fargo Bank. Of course, there is still a matter of bankruptcy approval by the courts. Those that closely followed the happenings on the market, stock trade as well as rumors around the net, could definitely see this coming.

According to OCZ, the agreement with Toshiba includes various conditions including, the preservation of the value of the business, including the retention of employees, the negotiation and execution of definitive documentation, the filing of bankruptcy petitions by the Company and certain of its subsidiaries, Toshiba's offer being accepted by the bankruptcy court as the highest and best offer under the circumstances after an auction process conducted under the relevant provisions of the United States Bankruptcy Code, and other customary closing conditions.

The deal actually makes sense as it will put both the OCZ and Toshiba in a really good position considering that Toshiba actually needs a new flash controller and will get OCZ's distribution channels as a bonus, while OCZ will get to keep its name as well as other non-flash related assets.

In any case, we will definitely keep an eye on the situation and report back as soon as court approves or rejects the bankruptcy petition. In the second case, OCZ plans to file another petition for bankruptcy and liquidate its assets.



Source: OCZ.com.