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Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 88.67-0.2%Dec 1 3:59 PM EST
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To: Sam who wrote (2675)7/28/2023 7:54:51 AM
From: Elroy  Read Replies (1) of 2977
 
Perhaps MXL has covenants in their loan agreement (they need to borrow $3b to do the deal), and they know that the Q2 report they just issued will break the covenant, so they can't get the $3b loan, so they're scrambling. That makes the most sense - they can't go the deal, so the deal contract commitment may push them into bankruptcy.

I imagine MXL and SIMO are in negotiations right now about what to do. I can see SIMO shareholders owning MXL before this is over if MXL cannot raise the cash to complete the deal.....
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