Liquidation: MAGNACHIP SEMICONDUCTOR Corp

Form Type: 8-K/A

Filing Date: 2025-05-13

Corporate Action: Liquidation

Type: Update

Accession Number: 000119312525118848

Filing Summary: Magnachip Semiconductor Corporation is filing an amendment to its Current Report on Form 8-K to amend Item 2.05 and provide an estimate of the range of total charges expected to be incurred in connection with the Liquidation of its wholly owned subsidiary, Magnachip Mixed-Signal, Ltd., which operated the discontinued Display business. The estimated cash cost of the Liquidation is approximately $12 to $15 million, which is anticipated to be offset by expected cash inflows of approximately $15 million to $20 million from the sale of 'end of life' Display products and monetization of related intellectual property assets. The one-time Liquidation costs will include statutory severance and other employee-related costs, with around $4.5 million having already been accrued. The expected recognition of these charges will occur in the quarter ending June 30, 2025.

Form Type: 8-K

Filing Date: 2025-04-08

Corporate Action: Liquidation

Type: New

Accession Number: 000119312525075096

Filing Summary: On April 8, 2025, Magnachip Semiconductor Corporation announced its decision to shut down its Display business, leading to the liquidation of its wholly owned subsidiary, Magnachip Mixed-Signal, Ltd. This decision was approved unanimously by the Company’s Board of Directors on April 6, 2025, after a comprehensive review determined that the Discontinued Business was unsustainable and could not be restructured for profitable growth. The Company had explored various strategic options, including potential sales, but was unable to finalize any transactions that were in the best interests of its stakeholders. The Company expects to complete the exit from the Discontinued Business by the end of Q2 2025, while also beginning notifications to impacted customers. As of the filing, the total expected costs related to the liquidation have yet to be determined, with plans to file an amendment for this information within four business days. A press release detailing the liquidation was issued the same day as the filing and is attached as Exhibit 99.1.