Azure Dynamics is negotiating with Mosaid Technologies for Mosaid to buy the beleaguered electric drive vehicle company’s patents and related assets.
Azure bailed on a proposed stock offering and sought protection from creditors under Canada’s Companies’ Creditors Arrangement Act in late March (F&F, April 9). The company laid off approximately 120 of 160 workers and closed down operations in Michigan, Boston and the UK.
Production of vehicles including Ford-based Balance hybrids and pure battery electric Transit Connects ceased, and by late April top executives including chairman Campbell Deacon and CEO Scott Harrison had resigned.
DIP Lender to Get $2.7 Million
Azure said last week that it was moving to sell its patents, and a document filed Monday by the court-appointed monitor of the CCCA proceedings, Ernst & Young, names Ottawa-based Mosaid as the buyer.
The proposed price was not disclosed, but according to the Ernst & Young document, the debtor-in-possession lender now carrying Azure, Liberty Street Capital, expects a sale closing payout of $2.7 million, after which “it will not continue to fund the Azure Group.”
Mosaid is an intellectual property firm that specializes in the licensing and development of semiconductor and communications technologies.
The purchase of the patents is expected to be finalized by the end of August, Azure said.
Contact information is only available to premium subscribers. Click here to purchase a subscription.
Source: Azure Dynamics releases, Ernst & Young court filing, F&F follow-up