NeoMagic pays 10 cents on the dollar to settle with former landlord

neomagic-logoNeoMagic, the insolvent chip maker that ceased searching for new business last September, settled last week with its former landlord last week by agreeing to pay $35,000 over the next 60 days to settle the landlord’s claim of $2.04 million. Combined with a $176,500 security deposit held by the landlord, the settlement works out to about 10 cents for every dollar of alleged debt.

NeoMagic had a lease on 45,000 square feet that was set to expire in April 2010. It was notified by the landlord back on Sept. 30, 2008, that company would be in default of its lease if rent payment arrearages were not paid within five days of the date of notice, according to the company’s most recent 10-Q filing. In January, NeoMagic moved its headquarters to a facility in San Jose under a lease that expires in January 2010.

The company let go of most of its employees last year.

 

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