CHATCOM SEEKS NEW BEGINNING; CHAPTER 11 FILING ALLOWS REORGANIZING.Byline: Dave McNary Staff Writer ChatCom Inc., the long-struggling producer of network servers, said Friday that it has filed for bankruptcy protection and furloughed its entire staff of seven employees. The Chatsworth-based company, which had warned in March that it was facing bankruptcy due to a cash crunch (1) To process data. See number crunching. (2) To compress data. See data compression. 1. (jargon) crunch - To process, usually in a time-consuming or complicated way. , made the Chapter 11 filing this week in federal 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. in Woodland Hills. The filing listed $2.2 million in liabilities. James P. Roche, who became chief executive officer in July after agreeing to provide up to $600,000 in financing, said he was forced to seek bankruptcy protection because of recent efforts by senior secured lender ALCO Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to place the company into receivership receivership In law, state of being in the hands of a receiver, a person appointed by the court to administer, conserve, rehabilitate, or liquidate the assets of an insolvent corporation for the protection or relief of creditors. . Roche said ChatCom owes ALCO about $66,000, down from the $282,000 it owed in July. Roche also said the filing should enable ChatCom to start reorganizing its finances and rehire Re`hire´ v. t. 1. To hire again. the furloughed employees next week. ALCO spokesman Robert Weisberg Robert Weisberg is an Edwin E. Huddleson, Jr. Professor of Law at Stanford Law School, and an expert on criminal law and procedure, and a leading scholar in the law and literature movement. Biography Weisberg received his B.A. said the company had sought to place ChatCom into receivership because of ongoing financial problems since Roche took over. ``It's a sad situation,'' Weisberg said. ``The company has good prospects.'' ChatCom's staff was cut from 50 to 21 earlier this year and it moved to smaller offices. It recently announced it had developed a signature verification system called ChatLok that would protect individual computer users within a system. |
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