SAN JOSE, Calif. -- Aviza Technology Inc. and its subsidiaries, Aviza Inc. and Trikon Technologies Inc., have filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.
Prior to the commencement of the Chapter 11 case, fab tool supplier Aviza (Scotts Valley, Calif.) executed a nonbinding letter of intent to sell certain of its assets and businesses to Japan's Sumitomo Precision Products Co. Ltd. (SPP).
Aviza and SPP are still negotiating the terms of the deal, which should be finalized in 8-to-10 weeks, according to Aviza. Under the proposed plan, SPP will acquire Aviza's CVD, etch and PVD lines. Those products were once part of Trikon, which was acquired by Aviza in 2005.
In addition, SPP will also assume Aviza's furnace lines. But SPP will not buy Aviza's atomic layer deposition (ALD) technology; that product will cease to exist, according to Aviza.
An undisclosed number of employees will also join SPP. All told, Aviza will be ''wound down'' and will no longer exist as an independent company over time.
Aviza has been hit hard by the downturn. It has also implemented work force reductions, executive salary cuts, mandatory time off for all of the company's employees and significant decreases in non-labor expenses.
At the same time, the company has been working with Needham & Co. LLC to review and pursue financial and strategic options for the company.
"We have been working hard to find a buyer that would best leverage our products and provide on-going support to our customers," said Jerry Cutini, Aviza's president and CEO, in a statement. "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."
''We did some great things, but this downturn just caught us. Our biggest customer also went bankrupt,'' he told EE Times, referring to DRAM maker Qimonda AG. ''It was the perfect storm.''
Others are also suffering. Recently, Japan's S.E.S. Co. Ltd. filed for bankruptcy protection under a rehabilitation law with 14.27 billion yen ($158.4 million) in liabilities. The company made some headlines in recent times. Last year, S.E.S. reportedly shipped the world's first 450-mm tool--a next-generation wafer cleaning system, according to sources. The first 450-mm tool, which is said to be a R&D prototype, was reportedly going to South Korea's Samsung Electronics Co. Ltd., according to sources.
Another fab tool supplier, Asyst Technologies Inc., also filed for Chapter 11 in recent times. Brooks, FSI, Mattson, Tegal and other fab tool makers are also in trouble, but they have not filed for Chapter 11.
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