Wave Computing said it has emerged from Chapter 11 and will continue business going forward as MIPS.
As a result of the Chapter 11 restructuring plan approved by the United States Bankruptcy Court for the Northern District of California on 10 February 2021, in which a majority of creditors will receive a meaningful recovery, Wave Computing, Inc. and its subsidiaries including MIPS Tech, will be known as MIPS. The company’s statement said this reflects its strategic focus on the RISC-based processor architectures which were originally developed by MIPS. It added that MIPS is also developing a new “standards-based 8th generation architecture,” which will be based on the open source RISC-V processor standard. The company provided no further details.
The new majority owner of MIPS is Tallwood Venture Capital, which emerged as the winner of the bankruptcy auction held in December 2020, with a restructuring bid valued at $61 million. Sanjai Kohli will continue to lead MIPS as CEO.
“Now that we have completed our Chapter 11 restructuring, I’m looking forward to growing our business and executing on our go-forward strategy,” said Kohli. “We have an incredible opportunity with our valuable MIPS architectures to scale this technology for a wide range of new customers. I would like to thank our whole team for their hard work and patience during the Chapter 11 process, and our advisors for guiding us to a successful outcome.”
“After working closely with all our stakeholders over the past several months, we arrived at a plan that will generate a strong recovery for creditors and put MIPS on solid financial footing for the future,” said Larry Perkins, chief restructuring officer of MIPS. “This is a valuable business with incredible potential, and has emerged from bankruptcy as a much stronger company. I can’t wait to see what Sanjai and the team accomplish.”
Wave Computing had filed for Chapter 11 in April 2020. Despite Wave’s troubles, as we reported, MIPS, which was treated as a completely separate business unit within Wave and with its own contracts under its own name, continued to thrive, with the MIPS I-Class processor core family being the most profitable part of the business.
Established in 1984 as MIPS Computer Systems, MIPS has passed through a number of hands, including Silicon Graphics in 1993, Imagination Technologies in 2013, Tallwood Venture Capital in 2017, and then Wave Computing in 2018.