Wave Computing reaches agreement to exit Chapter 11 bankruptcy

By Sarah Lizee

Olympia, Wash., Dec. 30 – Wave Computing, Inc. and its subsidiaries, including MIPS Tech, announced that they have reached an agreement with secured lender Tallwood Technology Partners, LLC to restructure their current capital structure and provide substantial recovery to their unsecured creditors via amendments to the proposed Chapter 11 plan of reorganization.

Wave began an auction on Dec. 21, seeking the highest or otherwise best offer to restructure or purchase the company's business, and, after improving its initial restructuring bid by nearly $10 million, Tallwood was identified as the successful bidder the next day, according to a press release.

“The conclusion of the auction and decision to move forward with the Tallwood restructuring moves Wave's Chapter 11 cases a large step toward conclusion,” the company said in the release.

“Wave initiated its restructuring in April 2020 and has since run a thorough marketing process. The restructuring will allow Wave to refocus its business around the continued commercialization of the company's storied MIPS architectures, and position itself for sustainable long-term growth.”

Wave said the restructuring is expected to generate a high recovery for the company’s creditors and represents a strong outcome for all the company’s stakeholders.

The restructuring proposal will be submitted to creditors for a vote and presented to the U.S. Bankruptcy Court for the Northern District of California for approval in early 2021, and if approved, will allow the company to emerge from Chapter 11 protection shortly after.

A team from Sidley Austin LLP led by Sam Newman is serving as legal counsel to Wave, SierraConstellation Partners is serving as financial and restructuring adviser, and Armory Securities is serving as investment banker. Binder & Malter LLP is serving as legal counsel to Tallwood.

Santa Clara, Calif.-based Wave Computing is a processor technology company focused on the commercialization of RISC processor architectures and IP cores. The Chapter 11 case number is 20-50682.

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