Canadian fabless company V3 Semiconductor is to file for Chapter 11 protection from bankruptcy.
Its move was revealed as California's QuickLogic unveiled a deal to buy some of V3's intellectual property, products and methodologies. The all-stock deal values the V3 assets at between $12m and $15m. QuickLogic also wants to take on all of V3's employees.
Arthur Whipple, V3's chief financial officer, said the Chapter 11 filing would mean that the QuickLogic deal will "operate something like a pre-packaged bankruptcy, in which the court will be required to approve the asset purchase agreement".
Last month, V3 was de-listed from Nasdaq after the resignation of its then auditor, KPMG, left it unable to file results. It has since been traded over-the-counter.
V3 and QuickLogic have also entered into a manufacturing and distribution agreement pending the sale to ensure a seamless transition. V3 anticipates that all creditors will be paid in full.