SAN FRANCISCO—Advanced Micro Devices Inc. Monday (Feb. 14) announced that the company had terminated an accounts receivable agreement with IBM's global financing group.
In a regulatory filing, AMD said that on Feb. 11 the company terminated a 2008 sale of receivables-supplier agreement with IBM Credit LLC. AMD's wholly owned subsidiary, AMD International Sales & Services Ltd., terminated a similar agreement with IBM United Kingdom Financial, the company said.
Under the agreements, AMD and its subsidiary had agreed to sell to each of IBM Credit and IBM UK certain customer receivables up to credit limits set by IBM Credit and IBM UK applicable for each customer, AMD said.
The agreements were terminated under a clause that permits a party to terminate without cause with at least 30 calendar days prior written notice to the other party, AMD said.
A spokesperson for AMD said Tuesday that under the original arrangement, AMD would sell receivables to IBM from certain AMD distributor customers. "For a fee, AMD would receive payments from IBM in exchange for the receivable and AMD’s distributor customers would be obligated to pay IBM. As a result of the termination of the program, all invoices dated after February 11, 2011 will be paid to AMD directly by the customers," the spokesperson said.
The spokesperson said the termination of the agreement does not impact or have any relationship to AMD's customer relationship with IBM.
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