Friday, July 10, 2009

Electroglas Files For Chapter 11 Bankruptcy

San Jose-based Electroglas, a supplier of wafer probes and related software for the semiconductor industry, said late Friday that it has filed a voluntary petition for Chapter 11 bankruptcy. The firm said the move came as the firm has been hit by the global economic recession, and the corresponding drop in demand for semiconductor manufacturing equipment. The firm said it has laid off staff, cut salary, force mandatory time off, in addition to other efforts to reduce expenses, and has also engaged Needham & Company and others to help it merge or sell the firm's company or assets. The company said it now plans to have certain of its bondholders provide Debtor in Possession financing, and to conduct an auction to sell the company.