SyQuest Technology Signs Definitive Agreement With Iomega for the Sale of Select Assets; Agreement Includes Sale of All Intellectual Property and U.S. Inventory.FREMONT, Calif.--(BUSINESS WIRE)--Jan. 13, 1999--SyQuest Technology, Inc. (Nasdaq:SYQT SYQT System Qualification Testing ) announced today that it has entered into a definitive agreement with Iomega Corporation (company, storage) Iomega Corporation - A storage device manufacturer whose major products are the Zip and Jaz removable disk drives and Ditto tape drives. They became popular with an early product called the Bernoulli Box. (NYSE NYSE See: New York Stock Exchange :IOM IOM See: Index and Option Market ) to sell certain assets including all of its intellectual property, its U.S. inventory and its U.S. fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → for $9.5 million in cash, subject to certain closing conditions and adjustments. SyQuest filed a motion on Jan. 12 in the United States Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. to seek approval for the sale of these assets to Iomega. Specific conditions to closing the asset sale include Iomega's acquisition of the inventory and equipment assets of SyQuest's Malaysian subsidiary for additional consideration. "We have reviewed the Iomega offer and alternative offers closely. SyQuest's accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and claims for tax and other refunds are being retained by SyQuest to provide further value to our creditors beyond the cash offer to be paid by Iomega," SyQuest commented. "To best serve our loyal installed base of users, we have been working diligently to negotiate the best possible agreement that would address their needs." The proposed sale of assets is not likely to provide any return to shareholders. As previously announced, SyQuest has commenced limited sales and support operations. This includes online technical support via the World Wide Web, warranty returns, and product service operations. The company anticipates adding additional customer service and technical support resources in the near future. The United States Bankruptcy Court scheduled a hearing for January 19, 1999, to establish sale procedures in connection with the proposed sale of assets, including provisions for considering alternative purchase proposals. SyQuest filed a Chapter 11 petition with the United States Bankruptcy Court in Oakland, California on November 17, 1998. Trading in SyQuest stock was suspended on November 2, 1998, and the Company's shares are likely to be delisted from NASDAQ in the very near future. This news release contains forward-looking statements that involve risks and uncertainties, and other risks detailed from time to time in the SEC reports filed by SyQuest including its most recent reports on Forms 8K, 10K and 10Q. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion