Adaptive Solutions Announces Close of Business.BEAVERTON, Ore.--(BUSINESS WIRE)--Oct. 29, 1998--Adaptive Solutions Inc. (ADSO) announced that it will cease operating at the close of business Oct. 29, 1998. To facilitate an orderly liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of the company's assets, Adaptive Solutions has filed a Chapter 7 bankruptcy petition with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Oregon. Management cited the loss or delay of several significant purchase orders in September as a key reason for the decline in the company's financial condition. Since Adaptive acquired the Kodak Imagelink OCR OCR in full optical character recognition Scanning and comparison technique intended to identify printed text or numerical data. It avoids the need to retype already printed material for data entry. business in October 1997, it has been working aggressively on delivering its new EntryLink computer-assisted data entry products to market and had expected to receive several orders from customers evaluating or finalizing purchase requirements. The company recently established a line of credit with Silicon Valley Bank permitting borrowing based on customer accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . As a result of the delay or loss of certain customer orders, the company is in breach of covenants with respect to this credit line. The company lacks sufficient capital to fully repay loaned amounts and to remain operating. Adaptive Solutions has explored alternate merger or acquisition partners as a source of capital and retained an investment banking firm in June 1998 to help raise capital or find a buyer. Despite significant effort, it has not been successful in obtaining additional investments. Adaptive Solution's present financial condition precludes it from meeting obligations necessary to continue as a going concern. Under Chapter 7, an appointed trustee will seek to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the the company's assets with the proceeds applied to the claims of creditors. |
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