Bankruptcy

Recent Chapter 11 Filings: Verso Technologies, Inc. And Related Companies File Chapter 11 In Northern District

By Scott Riddle

After a slow three weeks for Chapter 11 filings, Atlanta-based technology company Verso Technologies, Inc. (yahoo! Finance, Google Finance), and four related entities, filed Chapter 11 petitions in the Northern District of Georgia on April 25, 2008. The cases are --  

The Verso Tech petition lists assets of $34 million and liabilities of $36.67 million. 

According to its website -

Atlanta-based Verso Technologies, Inc. (NASDAQ:VRSO) is a global provider of leading edge IP telephony products and solutions. We enable profitable end to end IP Communications over wireline, wireless, terrestrial and satellite links. Across six continents and 38 nations, from tier 1 carriers to emerging providers and enterprises, Verso products and globally deployed resources meet challenging requirements for VoIP migration, access, transport and application delivery.

Click here for the latest Annual Report, Form 10-K.  The summary, particularly starting at pp. 17, lists many of the apparent reasons for the filings, including a default in its $3.6 million obligation to Clarent Corporation.  Verso purchased substantially all of the assets of Clarent in late 2002 for $9.8 million.

The purchase of the assets of Clarent (as opposed to a purchase of the stock, or a merger) was in conjunction with a Chapter 11 filing by Clarent. On December 13, 2002, Clarent filed a Chapter 11 petition in the United States Bankruptcy Court for the Northern District of California, Case No. 02-33504.

Scott Riddle’s practice focuses on bankruptcy and litigation. Scott has represented Chapter 11 debtors, creditors, trustees and other interested parties in bankruptcy cases and bankruptcy litigation.  For more information, click here.

Full post as published by Georgia Bankruptcy Blog on April 27, 2008 (boomark / email).