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OCZ files for bankruptcy, Toshiba looks to purchase

OCZ files for bankruptcy, Toshiba looks to purchase

OCZ has been forced into bankruptcy following the breach of terms of one of its loans, with Toshiba claimed to be looking to pick up its assets.

Solid-state storage specialist OCZ has filed for bankruptcy, with Toshiba in the frame to pick up the company’s assets, following the failure to repay a business loan.

The company, which recently discarded numerous product lines to focus entirely on solid state storage, has formally announced that it has been found in breach of the terms of a loan from investment group Hercules Technology Growth Capital. The result: Hercules has taken exclusive control of the company’s bank accounts, leaving it with no choice but to enter bankruptcy proceedings.

OCZ claims to have received an offer from Toshiba which will see the company acquire ‘substantially all of [OCZ’s] assets in a bankruptcy proceeding.' The agreement, OCZ explains, is subject to several terms: the perceived value of the company’s business must be maintained, employees must be retained, and Toshiba’s offer must be accepted by the bankruptcy court as the highest and best offer. It’s this latter which could lay the company’s plans low: if a rival corporation places a higher bid with the court, they - not Toshiba - will walk away with OCZ’s assets.

Toshiba enters the fray in a strong bargaining position, however. OCZ has indicated that if it is unable to reach an agreement with Toshiba, it will immediately file a petition for bankruptcy and liquidate - which would be bad news indeed for owners of its hardware, who would lose any outstanding warranty periods as a result, as well as the company’s numerous employees.

41 Comments

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julianmartin 28th November 2013, 00:22 Quote
Sucky :(
SchizoFrog 28th November 2013, 04:47 Quote
This is exactly why successful businesses diversify rather than specialise. Sure you discard certain paths to concentrate your direction but you never put all your eggs in one basket if you want to keep existing as it is only a matter of time.
It would be interesting to find out the hierarchy situation over the last few years that led up to this, something just feels like the big boys did what they could to strip the company and line their pockets before this ultimate end.
Griffter 28th November 2013, 06:19 Quote
wow!! well maybe stop selling ur product at a ridiculous price and maybe the uptake would have been better.
Bindibadgi 28th November 2013, 06:29 Quote
OCZ has value, even if their brand name is now worthless. If Tosh is able to pull out PLX, Indilinx, their marketing people (you can't deny their marketing and branding people have done an amazing job the last 10 years), and some engineering talent (OK they had lots of failure but that was due to product management + senior management) then they can definitely take it to Samsung and SK Hynix in the SSD market. Tosh Toggle NAND is great and if Tosh want to get boisterous, then OCZ has a ton of patents they could use to license (litigate) as well.
Harlequin 28th November 2013, 08:02 Quote
indilinx controller is good now - so tosh would want that onboard and do a Samsung , awesome kit built in house.


ocz never recovered from the entire sadfarce failures , not actually there problem (intel had similar issues at the time as well) - just the vertex 3 problems were well documented.
Hg 28th November 2013, 08:49 Quote
Should never had stopped selling RAM.
I always use to by OCZ Ram as it was very good stuff at good prices.
When they moved away from RAM and into SSDs i knew this was the beginning of the end :(
Dave Lister 28th November 2013, 09:15 Quote
Very sad, I didn't know things were that bad for them. There SSD lineup always seemed to be strong and at the time I bought my first SSD, OCZ had the best available.

Lesson: Never trust any money lenders ! avoid loans at all costs.
lysaer 28th November 2013, 09:15 Quote
I dunno OCZ ram went down post reaper but somehow their prices went up.

They were a great ram company but I think they got a bit to greedy

Sent from my GT-I9505 using Tapatalk
r3loaded 28th November 2013, 10:05 Quote
Quote:
Originally Posted by Dave Lister
Lesson: Never trust any money lenders ! avoid loans at all costs.
It's kinda hard to avoid financial products if you're in business and want to expand. Money's gotta come from somewhere and anyone giving you money will want to see a return from it. ;)

Quite sad really as they were one of the few who actually did in-house controller design. The Indilinx IP and engineers are probably the most valuable part of the company right now.
faugusztin 28th November 2013, 10:29 Quote
Quote:
Originally Posted by Dave Lister
Lesson: Never trust any money lenders ! avoid loans at all costs.

Do you realize that if that loan would not happened, OCZ would have entered bankruptcy a half year ago ?
Gareth Halfacree 28th November 2013, 10:35 Quote
Quote:
Originally Posted by Dave Lister
Lesson: Never trust any money lenders ! avoid loans at all costs.
Surely a better lesson is: when you borrow money (as you surely must) make sure you obey the contractual terms, or the lending party will quite rightly seek other ways of getting its money back.
Dave Lister 28th November 2013, 10:48 Quote
@ r3loaded - Surely a company should expand by profits made.

@faugusztin - I know they must have been fighting an uphill battle but in the end all it bought them was six months. Doesn't really seem worth it :(

@Gareth - Good point but is it not debt that has ensured the country is a complete mess now ? So it's probably better to avoid it and save for what you need instead ? If saving for what you need is not possible then it's a damned messed up system we have !
Corky42 28th November 2013, 10:54 Quote
Saving money and not taking a loan is possible, but what happens when it takes you 10 years to save money so you can expand and your competitor borrowed the money 10 years ago expanded and has now cornered the market ?
faugusztin 28th November 2013, 11:00 Quote
Quote:
Originally Posted by Dave Lister
@faugusztin - I know they must have been fighting an uphill battle but in the end all it bought them was six months. Doesn't really seem worth it :(

That meant 6 more months for finding possible solutions instead of folding half year ago.
Dave Lister 28th November 2013, 11:08 Quote
@ Corky42 - That is very true which leads me to the conclusion that it is indeed a damned messed up system we are forced to live with.

@faugusztin - They probably should have had a big game changer plan before accepting any loaned money. I don't recall hearing anything in the news in the last 12 months let alone 6, that they had any amazing new tech coming out.
Gareth Halfacree 28th November 2013, 11:09 Quote
Quote:
Originally Posted by Dave Lister
@Gareth - Good point but is it not debt that has ensured the country is a complete mess now ? So it's probably better to avoid it and save for what you need instead ? If saving for what you need is not possible then it's a damned messed up system we have !
The factory, tools, production line, staff and logistical support required to release an SSD in 2013 would equal several million pounds at a conservative estimate - and that doesn't include the research and development required to actually make an SSD. How exactly should A. N. Entrepreneur save up for that?

I'd love to see any business larger than, let's say, ten people that didn't get started with a business loan and/or outside investment. It's simply not possible. Sure, I can save up for a PS4 instead of buying it on credit - but it doesn't matter how frugal I am nor how long I wait, I'll never be able to save up for a semiconductor fabrication plant. Remember, OCZ didn't just take out a loan six months ago; the company, like most others, will have had loans, investments and revolving credit facilities - like AMD's $500 million revolving line of credit - pretty much since it was founded.
Dave Lister 28th November 2013, 11:27 Quote
@ Gareth - I agree. It's a screwed up system that needs to change, OCZ did what they could but failed :(

I personally think they should never have bought indilinx or whoever it was because it then kind of tied them to that chipset alone. Its sort of the same mistake nokia made with buying that old OS for all there phones(I can't remember the name now) it tied them to that instead of progressing to android.
Gareth Halfacree 28th November 2013, 11:34 Quote
Quote:
Originally Posted by Dave Lister
@ Gareth - I agree. It's a screwed up system that needs to change [...]
If you think it needs to change, then you don't agree. How could you change it?
Shirty 28th November 2013, 12:09 Quote
Nothing fundamental has changed in 4,000 years of banking, and I suspect there's a reason for that.
Corky42 28th November 2013, 12:15 Quote
Quote:
Originally Posted by Gareth Halfacree
How could you change it?

Make it illegal to lend money :D
And watch as the whole world goes bankrupt

Disclaimer: This is just a joke im not dumb enough to think that would actually work.
Dave Lister 28th November 2013, 15:22 Quote
Quote:
Originally Posted by Gareth Halfacree
Quote:
Originally Posted by Dave Lister
@ Gareth - I agree. It's a screwed up system that needs to change [...]
If you think it needs to change, then you don't agree. How could you change it?

I agree that it would be in the regions of impossible for you (or the average joe) to save up and produce your own SSD line, then make it available to consumers worldwide. Cause and effect = Change is needed by all accounts.

I'm sorry if everyone thought I was trying to argue with the status quo here, I was merely expressing my position on the matter, I didn't expect tail feathers to get so ruffled, it's only the internet guys !
Gareth Halfacree 28th November 2013, 15:39 Quote
Quote:
Originally Posted by Dave Lister
Cause and effect = Change is needed by all accounts.
Again: what change do you suggest? You can't say "change is needed" without knowing what change is needed and why; you might as well be saying "custard is needed."
Shirty 28th November 2013, 15:49 Quote
Quote:
Originally Posted by Gareth Halfacree
"custard is needed."

Yes.

Yes it is.
Dave Lister 28th November 2013, 15:49 Quote
Well I know the starting blocks of custard that are needed, but a tech forum isn't the place to put idea's forward. That job is up to your elected official to introduce, I'm just the little guy to be dismissed.
Gareth Halfacree 28th November 2013, 15:54 Quote
Quote:
Originally Posted by Dave Lister
I'm just the little guy to be dismissed.
No, you're just the guy shouting that things have to change then clamming up when asked how exactly that might work. Which is spectacularly unhelpful in any given situation, and more often than not leads to terrible consequences of the "something must be done; this is something; therefore we must do this" variety. If you have ideas for change, put them forward; if not, find others who have put ideas for change forward and support theirs. Either way, don't just shout "CHANGE" at random intervals.

And if you have ideas for change that would mean I could own a semiconductor fabrication plant without needing a business loan or any other form of third-party finance, let me know. I quite fancy the idea of building my own chips.
Shirty 28th November 2013, 15:55 Quote
AKA Russell Brand syndrome :)
Harlequin 28th November 2013, 15:55 Quote
reminds of those `occupy` protestors - `change the system of wealth` - ok how , and that's where it falls apart
Dave Lister 28th November 2013, 16:38 Quote
Ok #1 Restructure the country so we can actually produce what we need for the population, ie food, building materials, energy production ect.

2# encourage people to do what they are good at. Not just what pays them the most.

3# Kick out all money lenders, banks, government (because they all chase the money). It's been done before in Greenland and worked wonders.

4# Phase out money, a corrupt, self serving, antiquated, unhelpful system all round .

5# Start looking to the future not just of the country but of the world. A long shot but as they say "Lead by example"

P.S. I stress I didn't want to bring this stuff up but have been left little choice when challenged. There are websites about this stuff, some of them have the answers and some are just self serving. In the future research the problem. As I said before I'm just the little guy and don't have all the answers.

PPS. Good on Russel Brand for speaking out about a company that made it's money dressing the nazi's and sabotaging other clothing franchises since ! It's easy to laugh at the guy but in the end he has put his rep' on the line to educate the common masses.
Gareth Halfacree 28th November 2013, 16:51 Quote
Quote:
Originally Posted by Dave Lister
Ok #1 Restructure the country so we can actually produce what we need for the population, ie food, building materials, energy production ect.
I fail to see how that would allow someone like me to start up a company like OCZ sans finance. (Also, I'm pretty sure that our population to land mass ratio makes it impossible for us to be self-sufficient as a nation - unless you fancy putting everyone in low-energy high-rise buildings and turning the rest of the land over to high-intensity battery farming. That, or decimate the populace.)
Quote:
Originally Posted by Dave Lister
2# encourage people to do what they are good at. Not just what pays them the most.
Ditto.
Quote:
Originally Posted by Dave Lister
3# Kick out all money lenders, banks, government (because they all chase the money). It's been done before in Greenland and worked wonders.
Has it? 'Cos I'm pretty sure Greenland still has a government, not to mention banks - banks that provide loans to businesses and private individuals, no less. And, again, I'm failing to see how having no government and no banks would help me set up my OCZ-alike.
Quote:
Originally Posted by Dave Lister
4# Phase out money, a corrupt, self serving, antiquated, unhelpful system all round .
And we're replacing money with what, exactly? The barter system doesn't scale, and again this isn't getting me any closer to my unfunded OCZ-alike start-up (which, at this point, has no bank account and now no money 'cos we've just 'phased it out.')
Quote:
Originally Posted by Dave Lister
5# Start looking to the future not just of the country but of the world. A long shot but as they say "Lead by example"
That's not a plan for change, that's an empty statement.

I fail to see anything there that addresses your initial point: that the 'system' somehow failed OCZ, and requires change. None of the changes listed above would have allowed OCZ to be founded, much less prosper, even ignoring the complete impossibility of the majority of them.
Dave Lister 28th November 2013, 17:01 Quote
Gareth for god's sake look up the available info before spontaneously spouting conclusions. Greenland kicked out the there government and replaced it with a new one, the economy is now thriving thanks to not being tied to central banks and corrupt politicians. The OLD barter system has nothing to do with any new system, as I've said before, try reading up on the intricacies. And the system has failed OCZ because they bought it, hook line and sinker.

Once again i'd like to say i'm not here to argue, I was only stating a point about the original article and feel rather violated producing my view on other matters in a non relative forum.
Corky42 28th November 2013, 17:08 Quote
Quote:
Originally Posted by Gareth Halfacree
And we're replacing money with what, exactly?

Custard gets my vote :)
Gareth Halfacree 28th November 2013, 17:10 Quote
Quote:
Originally Posted by Dave Lister
Greenland kicked out the there government and replaced it with a new one, the economy is now thriving thanks to not being tied to central banks and corrupt politicians.
So the Bank of Greenland isn't Greenland's central bank?
Quote:
Originally Posted by Dave Lister
The OLD barter system has nothing to do with any new system, as I've said before, try reading up on the intricacies.
Reading up on what? You've provided nothing but the claim that money needs to go away.
Quote:
Originally Posted by Dave Lister
And the system has failed OCZ because they bought it, hook line and sinker.
That statement makes no sense. Here's a simple question: what should OCZ have done differently?
Quote:
Originally Posted by Dave Lister
Once again i'd like to say i'm not here to argue, I was only stating a point about the original article and feel rather violated producing my view on other matters in a non relative forum.
You weren't stating a point about the article, which was about OCZ filing for bankruptcy; you were espousing your, so-far ill-explained, political views using the article as a springboard. Make no mistake: I didn't bring politics into this discussion, you did, and I'm still waiting to hear your plan for my formation of an OCZ-like company without external finance (and, now, without money too.)
Dave Lister 28th November 2013, 17:28 Quote
Gareth stop trolling. I was only putting my point of view forward, even if I do have an alternative point of view, nothing was said of it in the original post. I'm betting your parents would agree that if you want something then save for it ! because they were brought up before the evils of our current system made themselves apparent.

Point one - You know what i'm talking about, don't make trivial comments

Point two - Google it, it's not that difficult to find alternative info.

Point three - OCZ couldn't have done much differently except pack up when they were defeated.

Point Four - NO i didn't bring politics into the argument, you did by trolling my first comment. I will not say anymore on the subject because I do not want to fuel your hatred to something alternative and I wish to stay neutral in this community.

If you have questions Gareth please PM me for answers or suggestions & I will reply ASAP.
Shirty 28th November 2013, 17:30 Quote
I'm enjoying this. It's surreal.
rollo 28th November 2013, 17:38 Quote
Unmissable stuff above.

In the real world no 3rd party ssd maker will exist shortly simply because there is no profit to be had in doing so.

Most of the ssd stuff has gone to the manufacutures.

It's like us getting intel to make us a x86 chip then trying to price against it not going to happen you just lose money. Leaves you the premium sector that kinda does not exist in ssds anymore.

The main reason AMD have had so many issues with cash flow is the sale of there fabrication unit. With it they surely would be at 20nm and pushing both intel and nvidia around.
Gareth Halfacree 28th November 2013, 17:41 Quote
Quote:
Originally Posted by Dave Lister
I'm betting your parents would agree that if you want something then save for it ! because they were brought up before the evils of our current system made themselves apparent.
What rot. My parents had a mortgage on their house, and I'm willing to bet yours did - or do - too. It doesn't matter how much saving I do, I'll never be able to afford a semiconductor plant - which is the very root of this discussion, and one you appear to be completely avoiding. That, by the way, is the hallmark of a troll: prolonging a discussion by refusing to address the matter at hand and instead retreating into tangents.
Quote:
Originally Posted by Dave Lister
Point one - You know what i'm talking about, don't make trivial comments
No, I really, really don't.
Quote:
Originally Posted by Dave Lister
Point two - Google it, it's not that difficult to find alternative info.
That's not how a debate works: if you have a point to make, you provide the evidence required to make that point. The burden of proof is upon you. Add to that, I don't know which of the dozens of post-monetary-unit economies you're espousing here - I could spend entire minutes debunking the wrong one!
Quote:
Originally Posted by Dave Lister
Point three - OCZ couldn't have done much differently except pack up when they were defeated.
So, once the changes you have still yet to elaborate upon have taken place - how would Neo-OCZ set up as an SSD manufacturer? (That's not trolling, that's a genuine question - I honestly don't understand any of the points you're trying to make.)
Quote:
Originally Posted by Dave Lister
Point Four - NO i didn't bring politics into the argument, you did by trolling my first comment. I will not say anymore on the subject because I do not want to fuel your hatred to something alternative and I wish to stay neutral in this community.
I think you and I may have very different definitions for the word 'trolling.' And, as it happens, I don't have any hatred for anything different - in fact, I haven't mentioned my own political views once in this thread. You're assuming, there, that because I haven't immediately agreed with whatever vision of the future you've opted to support (and still haven't explained to the point where I can actually understand it) that I must be in favour of the status quo - but that is far from the truth.
Quote:
Originally Posted by Dave Lister
If you have questions Gareth please PM me for answers or suggestions & I will reply ASAP.
There are quite a few above, but if you'd prefer to discuss this via PM I'd love for you to provide a more in-depth explanation of how your vision of the future actually works - in particular the no-money, no-banks, self-sufficient parts. (I won't even ask you to PM me an explanation of how a company like OCZ could form in such a scenario - at least, at first.)
Dave Lister 28th November 2013, 17:48 Quote
Well you can settle again Gareth, I said before I wont answer anything again in this thread, so feel free to PM. At the least it sidesteps and cheapens the article, so you know, I'm not happy to do that.
Gareth Halfacree 28th November 2013, 17:50 Quote
Quote:
Originally Posted by Dave Lister
Well you can settle again Gareth, I said before I wont answer anything again in this thread, so feel free to PM. At the least it sidesteps and cheapens the article, so you know, I'm not happy to do that.
Okay. As a start, I'll PM you my entire last post - feel free to respond to the questions therein whenever you get a chance.
Dave Lister 28th November 2013, 17:53 Quote
Sounds fine, thanks dude.
Harlequin 28th November 2013, 17:54 Quote
the perfect form of communism was supposed to be a utopian world , sadly the intereptation of the first `leaders amongst equals` has knocked that on the head - look at Maoism and stalinism
Corky42 3rd December 2013, 09:52 Quote
Look like Toshiba has reached an agreement with OCZ.
http://ir.ocz.com/news/detail/3014
Quote:
the Company has signed an asset purchase agreement with Toshiba Corporation, a global technology leader and manufacturer of NAND flash memory, to acquire substantially all of OCZ's assets in a chapter 11 bankruptcy proceeding for $35M. Under this agreement Toshiba will acquire OCZ's client and enterprise solid state drive business. OCZ will continue to operate and serve existing and future customers during this process. Toshiba has agreed to provide the Company with DIP (Debtor-in-Possession) financing to ensure that there is adequate capital and flash supply to support the business during the contemplated sale period.
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