Akoustis is selling its business amid bankruptcy fears

In the United States, Akoustis Technologies, Inc. voluntarily filed for Chapter 11 bankruptcy protection on December 16, 2024. This decision was made to facilitate a strategic sale of the company's business following a final judgement related to patent infringement issues. The company aims to ensure that the assets being sold are free from infringement by Qorvo, thereby appealing to potential buyers. This filing is part of a broader response to the need for a structured approach in navigating financial difficulties while maintaining operations during the sale process. The Chief Executive Officer of Akoustis, Kamran Cheema, emphasized the commitment to uphold continuous service delivery for customers throughout this transition. The company reportedly has adequate liquidity, allowing it to meet obligations such as employee wages and critical vendor payments during the Chapter 11 proceedings. By using this court-supervised process, Akoustis hopes to create a conducive environment for potential buyers while mitigating the business's operational risks. To assure stakeholders of the ongoing viability of the business, Akoustis has entered into an agreement with Gordon Brothers Commercial & Industrial, LLC, who will act as a stalking horse bidder to purchase certain assets. This move is seen as a strategic step to stabilize the company’s immediate future and ensure ongoing operations in the competitive telecommunications market. The asset sale is crucial, as it not only helps in the financial recovery of Akoustis but also reinforces its position in the high-band RF filters sector. The context surrounding this filing includes the challenges the company faced due to increasing competition in the RF wireless industry and the pressures that arose from patent infringement legal battles. While the company assured stakeholders of its ongoing operations, the complexities associated with bankruptcy proceedings and the sale process can present significant hurdles. Nonetheless, Akoustis is committed to ensuring a seamless transition that prioritizes relationships with its customers, vendors, and employees, aiming to emerge from this process positioned for successful future operations.