ALL, just a gentle reminder...Don't forget the potential of this situation next week:
November 25, 1998
Dow Jones Newswires
SyQuest Said To Be In Talks After Getting Second Offer
Dow Jones Newswires
WASHINGTON -- SyQuest Technology Inc. (SYQT) is in talks with two potential buyers after receiving a second offer from an unidentified party Tuesday, according to an attorney for the removable disk drive manufacturer.
At a contested cash collateral hearing Tuesday, investment banker CIBC Oppenheimer Corp. testified that both letters of intent represent "real" offers, in response to a question from counsel for lender Greyrock Business Credit Corp., Tobias Keller of Murphy Sheneman Julian & Rogers said.
Keller told Federal Filings Business News that details of the offers were not disclosed and testimony for the hearing was submitted under seal.
After suspending operations earlier this month, Fremont, Calif.-based SyQuest filed for Chapter 11 on Nov. 17 and signed a letter of intent to sell "substantial assets" to a strategic buyer. The proposed transaction would include intellectual property, manufacturing and development equipment, finished goods, work in process and raw material inventory for disk drives and cartridges. SyQuest would retain accounts receivable and its facility in Penang, Malaysia.
Besides primary rival Iomega Corp. (IOM), SyQuest's competitors and possible strategic buyers include France's Nomai S.A., Imation Corp. (IMN), and Boulder, Colo.-based Caleb Technology.
According to Keller, SyQuest hopes to sign a definitive asset sale agreement by Dec. 7 or later that week.
In the meantime, the U.S. Bankruptcy Court in Oakland, Calif., has authorized the company's interim use of cash collateral through Dec. 7, the date of the final hearing. |
