Alliance Semiconductor begins proceedings to dissolve
Alliance Semiconductor Corp. said Wednesday that its Board of Directors will begin proceedings to dissolve the company.
Melvin Keating, president and CEO, of Santa Clara-based Alliance (PinkSheets:ALSC), said the company has been debating whether to re-invest in another business or liquidate and distribute its net assets to shareholders.
Bryant Riley, Alliance’s chairman, said that since the new board was formed, the company has sold its operating businesses and its venture capital portfolio and has liquidated its holdings in two publicly traded semiconductor companies.
"I am pleased that we have paid cash dividends of $4.35 per share as a result of these sales and the favorable resolution of certain tax audits, and I hope we can distribute additional amounts,” Riley said.
To conserve cash and reduce costs, Alliance has already substantially reduced its staff and the amount of office space it leases, the company said payday advance. Additional reductions in overhead are being explored. Further, given the corporation’s plan to dissolve and the small number of stockholders, the Alliance board has authorized the filings necessary to suspend the corporation’s reporting obligations under the Securities Exchange Act of 1934.
Keating noted that the amount and timing of additional distributions to shareholders is uncertain, especially because the company’s holding of auction rate certificates will need to be monetized in an orderly manner.
Filed under: management by Pascal