Akoustis: 363 Sales and Liquidating Plan in Chapter 11
Akoustis: Litigation Shock Drives 363 Sales and a Liquidating Chapter 11 Plan
ElevenFlo Research
March 6, 20269 min read
Akoustis Technologies, Inc. (later renamed ATech (Parent) Resolution Corp.) filed chapter 11 petitions in the District of Delaware on December 16, 2024. The First Day Declaration described a major trade secret and patent dispute with Qorvo that produced a final judgment "of approximately $59 million" in damages, fees, and interest, and it led the company into a court-supervised sale process rather than a conventional going-concern reorganization.
The process culminated in a sale of substantially all Akoustis assets to Tune Holdings Corp., a wholly owned SpaceX subsidiary, in a transaction for approximately $30.2 million in cash plus assumed liabilities, with a court auction held April 25, 2025 and a closing announced May 15, 2025. The remaining debtor estate later proceeded to confirmation of a wind-down plan.
Debtor(s)
ATech (Parent) Resolution Corp., et al. (f/k/a Akoustis Technologies, Inc.)
Akoustis was an integrated device manufacturer of patented bulk acoustic wave (BAW) high-band RF filters used in wireless and adjacent markets, including Wi-Fi and 5G infrastructure. Its key manufacturing asset was a wafer-manufacturing facility in Canandaigua, New York, acquired in 2017 as a platform for consolidated wafer fabrication.
The company developed an "XBAW" process targeting frequency ranges aligned with Wi-Fi 6/6E and 5G bands.
Asset
Description
Canandaigua, NY wafer fab
120,000-125,000 sq. ft. facility acquired in 2017
RF filter product line
BAW high-band RF filters for wireless, Wi-Fi, and 5G applications
IP portfolio
40 U.S. patents transferred to SpaceX by end of Q2 2025
Akoustis Asset Base
Qorvo Litigation
Qorvo announced that a federal jury returned a verdict on May 17, 2024 finding willful and malicious trade secret misappropriation and patent infringement and awarding damages that Qorvo summarized as more than $31.5 million of compensatory damages plus $7 million of punitive damages. A law-firm announcement in the same period framed the outcome as roughly $38.6 million total damages and described findings involving "over 36" trade secrets and BAW resonator filter patents.
Morris Nichols reported that the court granted a permanent injunction in October 2024, including relief that blocked infringement of two patents and required removal of trade secret information from Akoustis systems. Bloomberg Law later reported a $11.7 million attorneys' fee award entered September 9, 2024 and described the award as being authorized under the Defend Trade Secrets Act in light of willful and malicious misappropriation findings.
Date
Litigation Milestone
Details
May 17, 2024
Jury verdict
Willful/malicious trade secret findings; damages announced
May 2024
Trial counsel announcements
Damages framed as ~$38.6M; trade secret/patent scope described
Sep 9, 2024
Fees order
$11.7M attorneys' fees award
Oct 2024
Permanent injunction
Injunction entered; remediation directives described
Dec 16, 2024
Chapter 11 filing
Filing announcement cites ~$59M judgment; sale process announced
Qorvo Litigation Timeline
Capital Structure
Akoustis's balance sheet was funded largely through equity and convertible debt. A 2024 10-Q described $44.0 million of 6.0% convertible senior notes due 2027 outstanding, with semi-annual interest payments that could be made in cash or stock, and a $4.0 million promissory note outstanding. The company also had a history of secured convertible financing, including a $15 million note offering in 2018.
Liability
Amount
6.0% convertible notes due 2027
$44.0M
Promissory note
$4.0M
Qorvo litigation judgment
~$59M
Capital Structure at Filing
Cash Collateral
The case proceeded on cash collateral rather than a DIP facility. The debtors filed a Cash Collateral Motion seeking authority to use cash collateral subject to a budget and line-item variance controls, with adequate protection packages for the prepetition secured party. The court entered an Interim Cash Collateral Order two days after the petition date, authorizing budgeted disbursements with a 10% line-item variance and replacement liens as adequate protection.
Sale Process
The filing announcement described a stalking horse agreement with Gordon Brothers Commercial & Industrial, LLC. The court entered a Bidding Procedures Order in January 2025, establishing the sale timeline and a parallel Qorvo trade secret review track. Tune Holdings Corp., a wholly owned SpaceX subsidiary, ultimately acquired substantially all Akoustis assets for approximately $30.2 million in cash plus assumption of certain liabilities, as approved in the Sale Order. Tune announced it would continue operations and "team infrastructure".
Milestone
Details
Chapter 11 filing (Dec. 16, 2024)
Sale strategy announced; Gordon Brothers stalking horse disclosed
Court auction (Apr. 25, 2025)
Auction held
Winning bidder
Tune Holdings Corp. (SpaceX)
Closing (May 15, 2025)
Transaction completed; buyer continues operations
Sale Process Milestones
Microwave Journal reported that 40 U.S. patents transferred to SpaceX by the end of Q2 2025, covering key technologies related to high-frequency BAW filter design.
After the asset sale, the court entered a Confirmation Order on December 19, 2025 approving the Disclosure Statement and confirming the Chapter 11 Plan, establishing a wind-down framework with a plan administrator, professional fee escrows, and a class-based distribution scheme. The disclosure statement projected recoveries for general unsecured claims at the parent/operating entities (Class 4A) in a low-double-digit range, while smaller classes tied to specific debtor entities were projected to be paid in full.
Class
Description
Projected Recovery
Secured/priority
Taxes and other secured/priority claims
100%
General unsecured (core debtors)
Convertible notes and other GUCs
Low-double-digit range
General unsecured (smaller entities)
Claims at specific debtor subsidiaries
100% (de minimis pools)
Plan Treatment and Projected Recoveries
The plan included third-party releases on a consensual opt-in basis.
Chapter 11 petitions filed; sale strategy announced
Apr 25, 2025
Court auction held (announced)
May 15, 2025
Sale closing announced (Tune / SpaceX)
Dec 19, 2025
Confirmation order entered (wind-down plan confirmed)
Frequently Asked Questions
When did Akoustis (ATech) file chapter 11, and where was the case filed?
Akoustis filed chapter 11 on December 16, 2024 in the U.S. Bankruptcy Court for the District of Delaware.
What was the Qorvo litigation outcome and why did it matter to the bankruptcy?
Qorvo announced that a federal jury returned a verdict on May 17, 2024 awarding damages in a trade secret and patent dispute. Follow-on coverage included a reported $11.7 million attorneys' fee award and a permanent injunction in October 2024. The filing announcement tied the chapter 11 directly to a final judgment of roughly $59 million and framed the sale as a way to deliver a business "free and clear" of infringement issues.
Did the debtors obtain DIP financing, or did they proceed on cash collateral?
The case proceeded on a cash collateral framework rather than a large new-money DIP facility, as described in the Cash Collateral Motion, using a budgeted structure to fund operations through the sale process.
How did the 363 sale process work and who bought the main business?
The company announced a court-supervised section 363 sale process at filing and later announced that Tune Holdings Corp., a wholly owned SpaceX subsidiary, acquired substantially all assets.
What did the Tune (SpaceX) sale include and when did it close?
Akoustis announced that Tune acquired "substantially all" assets for approximately $30.2 million in cash plus assumed liabilities and that the transaction closed May 15, 2025 after a court auction on April 25, 2025.
What did the SpaceX acquisition signal about the asset base?
Microwave Journal reported that 40 U.S. patents transferred to SpaceX by the end of Q2 2025 and framed the acquisition as a strategic addition to RF front-end capabilities.
What recoveries were projected for unsecured creditors under the plan?
The disclosure statement model projected a low-double-digit recovery range for the main general unsecured pool at the core debtor entities, with certain smaller classes projected to be paid in full. Actual recoveries depend on allowed claim amounts, administrative costs, and final reconciliation.
Did the plan provide for third-party releases, and were they opt-in or opt-out?
The plan provided for third-party releases on a consensual opt-in basis rather than an opt-out structure.
Read more chapter 11 case research on the ElevenFlo blog.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. Read our full disclaimer.
