SCOTTS VALLEY, Calif. (AP) -- Aviza Technology Inc., which makes chip manufacturing equipment, said Wednesday that it filed for Chapter 11 bankruptcy protection.
Aviza shares fell 3 cents, or 21.3 percent, to 12 cents.
The company said that the filing stemmed from a recession-related drop in demand for its chip-making equipment, the acceleration of Aviza's borrowings from its secured credit facility and its failure to find new liquidity sources.
Aviza said that in the past several months it has worked to reduce costs and working capital requirements through things like job and executive salary cuts and mandatory time off for employees.
It has also worked with Needham & Co., looking at various options like merging with another company, selling some or all of its assets and liquidating or dissolving the company through a bankruptcy.
Before submitting its Chapter 11 filing, Aviza signed a nonbinding letter of intent to sell some assets and businesses to Sumitomo Precision Products Co. The company said it plans to follow through with this transaction and sell other assets as well.