"As a result of the global economic recession, demand for semiconductor manufacturing equipment has declined dramatically," the company said, adding that it has already made "significant decreases in non-labor expenses, work force reductions, executive salary cuts, reductions in benefits and mandatory time off ... However, recent delays in customer projects and related cash collections, a constriction in available borrowing from lenders, acceleration of vendor payment obligations, and inability to generate sufficient cash flow or identify new sources of liquidity have caused the company to seek bankruptcy protection in order to be better able to manage its operations through a restructuring process."
The company said it expects to continue essential operations, including product support, service and warranty programs, during this process. The parallel bankruptcy proceedings in the U.S. and Japan will permit the company "to preserve the going concern value of its assets in order to minimize any impact or disruption to the company’s continued ability to develop, maintain, and service its intellectual property."
Asyst said its common stock will likely have no future value and may be cancelled in connection with the bankruptcy proceeding and the ove could "affect our ability to attract a buyer for the businesses or assets of the company (or the consideration a buyer would be willing to pay for the businesses or assets of the company)."