Broke solid state storage maker sells assets to Toshiba

Taiwanese based solid state storage and power supply maker OCZ, which is currently in the clutches of a Chapter 11 bankruptcy, claims it has reached an asset purchase agreement with Japanese electronics giant Toshiba.

OCZ Octane SSD.

Under the deal [PDF], Toshiba will "substantially acquire" all of OCZ's assets for US$35 million. This includes OCZ's client and enterprise software businesses, which gives Toshiba access to intellectual property covering proprietary flash memory controllers, firmware and software.

OCZ chief executive Ralph Schmitt said the company's business has failed over the past year due to NAND flash supply constraints and credit issues. 

Toshiba will provide debtor in possession finance to ensure that OCZ can continue its business during the sale period.

A spokesperson for OCZ told iTnews that warranties for customers who have recently bought the company's products will be honoured, and technical support and firmware upgrades will continue to be supplied.

The sale is expected to close within the next two months, but it is conditional upon an auction and gaining approval from the bankruptcy court adjudicating the OCZ case.