Pocatello Wafer Plant Faces Deed-in-Lieu Agreement as Sale Stalls

Stalled Sales Force Deed-In-Lieu Agreement

The sale process for the facility has effectively stalled after drawing initial interest from potential buyers who reviewed the virtual data room through the summer. According to the 24th monthly report filed in federal court in Ohio by court-appointed receiver FTI Consulting, no qualified bids have materialized.

Financial pressures within the receivership have intensified during the prolonged wind-down process. Cumulative disbursements through the end of August topped $64.3 million against total receipts of about $63.4 million, leaving FTI Consulting with just under $400,000 in cash on hand. Because of dwindling reserves, the receiver chose not to exercise an option to extend the maturity of a loan held by secured lender Evergreen Advantage LLC. The loan, which financed LA Semiconductor’s 2022 purchase of the plant, went into default in May after growing from $32.5 million to $37.5 million through more than a dozen amendments.

Rather than pursuing a traditional foreclosure sale, the receiver is negotiating a deed-in-lieu of foreclosure agreement with Evergreen and chipmaker onsemi. Onsemi, formerly known as Semiconductor Components Industries, is the entity that originally sued LA Semiconductor into receivership.

Valuation Discrepancies and Outstanding Liabilities

The impending transfer of the property occurs against the backdrop of a third-party valuation completed in May by Chicago-based Cushman & Wakefield at the request of FTI Consulting. That assessment estimated the plant’s 18- to 24-month sale value at $63 million—nearly double the outstanding mortgage balance held by Evergreen.

Despite that estimated value, the receiver cited dwindling cash reserves as the primary reason for pursuing the deed-in-lieu path to close the case. Financial records show that onsemi has funded more than $51.1 million of the receivership’s operations to date, an increase from roughly $40.6 million earlier in the year.

Finalizing the handover has faced logistical hurdles. A joint status report filed in federal court outlined two specific snags. The first involved approximately $91,000 in remaining chemical decontamination costs required before any future sale. The designated contractor, Clean Harbors Inc., declined to proceed until receiving payment on past-due invoices totaling about $155,000—bills the receiver maintains are not the estate’s responsibility, and which onsemi continues to evaluate internally. The second snag involved a $150,000 past-due balance owed to Idaho Power after an autopay arrangement lapsed. Court records confirm that Idaho Power’s balance was resolved after onsemi agreed to cover the amount.

Local Economic Impact and Community Response in Pocatello

Regional leaders and municipal officials in Pocatello continue to monitor the legal proceedings from outside the courtroom, maintaining that reviving the facility remains vital to the regional economy. Pocatello Mayor Mark Dahlquist addressed the plant’s status in a statement to local media.

“Getting the former LA Semiconductor plant back up and running is of utmost importance,” Mayor Mark Dahlquist stated. “It’s by far and away the top economic development priority for the city of Pocatello. Over the past several weeks, we’ve worked closely with the Macquarie Group, Portneuf Valley Development, the Idaho Department of Commerce, Idaho State University, Bannock County and other relevant players. I want to assure the community that all hands are on deck and I remain optimistic about the future.”

Security fencing continues to surround the Buckskin Road facility, and signage directs the few remaining personnel to a single entrance on the building’s west side. While the legal transfer of the property proceeds toward completion, local leaders say they remain in the dark, but hopeful.