Time has run out for Aviza Technology with news that the semiconductor equipment supplier has filed voluntary Chapter 11 bankruptcy. The company had made a series of cost reductions that included selling property, small non-core products and workforce reductions in an effort to meet interest loan repayments and maintain operations.
“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.”
Aviza hopes to continue essential operations, including product support, service and warranty programs, during the Chapter 11 process.
In May, 2009 Aviza had defaulted on a United Commercial Bank loan of US$29.5m. that has already been amended several times in 2008. The company was also expected to be de-listed from NASDAQ as its stock price had been below the required US$1.00 level for more than six months, further limiting its access to capital.
Aviza follows Asyst Technologies into Chapter 11 proceedings as the access to capital remains restricted to at risk companies. Both Aviza and Asyst have not been profitable for many years.