Bank Line of Credit

9 Months Ended

Sep. 30, 2011

Bank Line of Credit [Abstract]

BANK LINE OF CREDIT

9. BANK LINE OF CREDIT

On February 9, 2011, the Company, TMFE and Trident Microsystems (HK) Ltd., or TMHK, entered into a $40 million revolving line of credit agreement (the “Agreement”) with Bank of America, N.A., to finance working capital. In order to access credit under the Agreement, the Company was subject to eligibility requirements, limitations and covenants. The Company has been unable to borrow under the credit facility or to refinance future indebtedness and has been prevented from using the Agreement to fund its working capital needs. The Company incurred loan origination costs and related expenses of $1.0 million, of which $0.2 million had been amortized prior to the three months ended September 30, 2011. As of September 30, 2011, the Company had not borrowed funds from the revolving line of credit. On August 8, 2011, the Company amended the credit agreement. As a result of the modification of the Agreement, the company wrote off the remaining unamortized portion of the loan origination fees of $0.8 million in the three months ended September 30, 2011, which was included in Other income, net on the Condensed Consolidated Statement of Operations. On November 1, 2011, the Company cancelled the Agreement, resulting in cancellation and legal fees of $0.2 million, incurred in the three months ending December 31, 2011. As a result of the cancellation, the Company and its subsidiaries will have no obligations under the Agreement and any collateral for the Agreement will be available to the Company without restriction.