- Trident Microsystems, Inc. Files for Chapter 11 Protection
- January 9, 2012
- Law Firm: Morris James LLP - Wilmington Office
On January 4, 2012, Trident Microsystems, Inc. and Trident Microsystems (Far East) Ltd. filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The petition lists assets between $100 million and $500 million and liabilities between $10 million and $50 million. Judge Christopher S. Sontchi has been assigned the case, which is being administered as case no. 12-10069.
According to the first-day Declaration filed by David Teichmann, executive vice president and general counsel for TMI, the majority of the companies’ business focuses on the set-top box and television business lines that were acquired from NXP Semiconductor NV in February 2010. The debtors have faced increased pricing pressures from foreign competitors and have been impacted by the slowdown in Western economies. According to Mr. Teichmann, the “combination of lower margins and sale volumes, high employee costs and limited access to new capital has significantly affected the Company’s liquidity and ability to pay its debts as they become due.” The debtors apparently are seeking a rapid sale of the set-top box business, and have identified a stalking horse bidder for that business.
Judge Christopher S. Sontchi has been assigned the case, which is being administered as Case No. 12-10069.