Following emergence, company to rebrand as MIPS
Wave Computing, Inc. (“Wave”) and its subsidiaries including MIPS Tech, the processor technology company focused on the commercialization of RISC-based processor architectures and IP cores, today emerged from Chapter 11 bankruptcy protection.
Going forward, the restructured business (“the Company”) will be known as MIPS, reflecting the Company’s strategic focus on the groundbreaking RISC-based processor architectures which were originally developed by MIPS. MIPS is developing a new industry-leading standards-based 8th generation architecture, which will be based on the open source RISC-V processor standard.
The emergence follows the approval of the Company’s Chapter 11 plan of reorganization on February 10 by the United States Bankruptcy Court for the Northern District of California. Under the approved plan, a wide majority of creditors will receive a meaningful recovery.
After a thorough marketing process and a bankruptcy auction held in December 2020, Tallwood Venture Capital (“Tallwood”) emerged as the winner with a restructuring bid valued at $61 million. Tallwood will take majority ownership of the reorganized company. Sanjai Kohli will continue to lead MIPS as CEO.
“Now that we have completed our Chapter 11 restructuring, I’m looking forward to growing our business and executing on our go-forward strategy,” said Mr. Kohli. “We have an incredible opportunity with our valuable MIPS architectures to scale this technology for a wide range of new customers. I would like to thank our whole team for their hard work and patience during the Chapter 11 process, and our advisors for guiding us to a successful outcome.”
“After working closely with all our stakeholders over the past several months, we arrived at a plan that will generate a strong recovery for creditors and put MIPS on solid financial footing for the future,” said Larry Perkins, Chief Restructuring Officer of MIPS. “This is a valuable business with incredible potential, and has emerged from bankruptcy as a much stronger company. I can’t wait to see what Sanjai and the team accomplish.”
During the Chapter 11 process, a team from Sidley Austin LLP led by Sam Newman served as legal counsel to Wave and MIPS; SierraConstellation Partners served as financial and restructuring adviser; and Armory Securities served as investment banker. Robert G. Harris from the Silicon Valley bankruptcy boutique, Binder & Malter LLP, served as counsel to Tallwood.
MIPS is a leading provider of RISC-based processor architectures and IP cores that drive some of the world’s most popular products. With the streamlined MIPS RISC-based architecture and CPU cores, semiconductor designers can create efficient, scalable and trusted products across a wide range of performance points – from the IoT Edge to high-end networking equipment, and everything in between.