SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 17,
1998
SYQUEST TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-19674 94-2793941
(Commission File Number) (IRS Employer Identification No.)
47071 Bayside Parkway, Fremont, California 94538
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (510) 226-
4000
Not Applicable
(Former name or former address, if changed since last report.)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
SYQUEST TECHNOLOGY FILES CHAPTER 11 PETITION; ANNOUNCES
LETTER OF INTENT WITH STRATEGIC BUYER
On November 17, 1998, SyQuest Technology, Inc. (the
"Company" filed a petition under Chapter 11 of the Bankruptcy
Code with the United States Bankruptcy Court in Oakland,
California, case number 98-71198-T11. SyQuest also signed a
letter of intent for the sale of substantial assets to a
strategic buyer. Pursuant to the letter of intent, the buyer
would acquire SyQuest's patents and other intellectual property,
manufacturing and development equipment, finished goods, work in
process and raw materials inventory for disk drives and
cartridges. SyQuest would retain all of its accounts receivable
and ownership of its building in Penang, Malaysia.
SyQuest would allocate a portion of the asset purchase price
to provide warranty service for products already sold to the
channel or to end users. In addition, the buyer would be
responsible for providing customer support and warranty service
for any SyQuest products it sells in the future.
The letter of intent is subject to the parties entering into
definitive agreements no later than November 25, 1998, unless
extended, and the satisfaction of other conditions. The asset
sale will ultimately be subject to authorization by the United
States Bankruptcy Court, and possibly, the approval of a Malaysia
court.
Item 7. Financial Statements and Exhibits
c) Exhibits
99.1 Registrant's Press Release dated November 17,
1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
SYQUEST TECHNOLOGY, INC.
(Registrant)
Date: November 17, 1998 By /s/ Henry Lo
Henry Lo, Chief Financial Officer
Exhibit 99.1
FOR MORE INFORMATION
Pat Murph
(415) 398-4700
FOR IMMEDIATE RELEASE
SYQUEST TECHNOLOGY FILES CHAPTER 11 PETITION;
ANNOUNCES LETTER OF INTENT WITH STRATEGIC BUYER
Fremont, California, November 17, 1998. SyQuest Technology, Inc.
(Nasdaq:SYQT), announced today that it had filed a petition under
Chapter 11 of the Bankruptcy Code with the United States
Bankruptcy Court in Oakland, California. SyQuest also announced
that immediately following the filing it had signed a letter of
intent for the sale of substantial assets to a strategic buyer.
Pursuant to the letter of intent, the Buyer would acquire
SyQuest's patents and other intellectual property, manufacturing
and development equipment, finished goods, work in process and
raw materials inventory for disk drives and cartridges. SyQuest
would retain all of its accounts receivable and ownership of its
building in Penang, Malaysia.
SyQuest would allocate a portion of the asset purchase price
to provide warranty service for products already sold to the
channel or to end users. In addition, the buyer would be
responsible for providing customer support and warranty service
for any SyQuest products it sells in the future.
The letter of intent is subject to the parties entering into
definitive agreements no later than November 25, 1998, unless
extended, and the satisfaction of other conditions. The asset
sale will ultimately be subject to authorization by the United
States Bankruptcy Court, and possibly, the approval of a Malaysia
court.
For further details on the proposed asset sale, bankruptcy
filing and related matters, please consult SyQuest's Form 8K
filed on November 17, 1998 and its previous SEC filings.
# # # #
This news release contains forward-looking statements that
involve risks and uncertainties, including the ability to reach
terms of definitive agreements that receive Bankruptcy Court and
other necessary approvals, the satisfactory conclusion of the
buyer's due diligence, and other risks detailed from time to time
in the SEC reports filed by SyQuest including its most recent
reports on Forms 8K, 10K, and 10Q.
1998 SyQuest is a registered trademark and the SyQuest logo is a
trademark of SyQuest Technology, Inc. All other brands or trade
names are the property of their respective companies.
