Akoustis to pursue sale through chapter 11 process

Akoustis (AKTS) announced that it has voluntarily filed for chapter 11 relief in the United States Bankruptcy Court for the District of Delaware to provide the company with the flexibility to complete its ongoing marketing and sale process while continuing to deliver for its valued customers around the world. The voluntary chapter 11 filing follows the company’s recent legal case with Qorvo (QRVO), in which Akoustis was ordered to pay a total judgement of approximately $59M in damages, fees, and interest related to allegations of trade secret misappropriation and patent infringement. To anchor the sale process, Akoustis has entered into a stalking horse asset purchase agreement with Gordon Brothers Commercial & Industrial for the purchase of certain of the company’s assets. Prior to the commencement of its chapter 11 cases, the company engaged in discussions with interested parties regarding the company’s continued operations through a potential sale of all or part of the company’s businesses and assets. In response to such interest, the company intends to use the court-supervised sale process to seek the highest or otherwise best bid for its assets. The company seeks to execute an organized sale process with sufficient time to obtain going concern qualified bids. Importantly, Akoustis continues to manage its operations with sufficient liquidity to continue to operate in the ordinary course of business during the court-supervised sale process. To ensure the continued operation of its business without interruption, Akoustis has filed customary “first day” motions in its chapter 11 cases. These motions, upon approval, will help facilitate the continued payment of employee wages and benefits, enable payments to critical vendors and other relief measures standard in these circumstances.