Thursday, February 28, 2013

Conexant Systems Files For Chapter 11 Bankruptcy

Newport Beach-based semiconductor developer Conexant said this morning that it has filed for Chapter 11 Bankruptcy, and is in a financial restructuring, which it says will significantly reduce its debt and improve its capital structure. The firm said the deal with its equity sponsors and secured lender, QP SFM Capital Holdings Limited (managed by Soros Fund Management), will exchange $195M of secured debt into equity. QFM will also received $76M in unsecured notes. In addition, Conexant will receive $15M in debtor-in-posession financing. The bankruptcy filing comes after the firm was hit by weakness in the semiconductor industry, and also due to overwhelming real estate costs. Conexant develops chips used in the imaging, audio, modem, and video markets.