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Bankruptcy Court Rules Psystar Can't Use Checks or Deposit Slips

By Pamela Jones et al.

Psystar, as you know, has filed for Chapter 11 bankruptcy protection. Already, it's not going well.

One of the very first motions you see in a bankruptcy is the one that lets the company continue to use business forms, like checks, for example. Normally, it's a no-brainer, as you saw in the SCO bankruptcy, where the motion [PDF] was filed on September 14, 2007, at a September 17 hearing a second hearing was scheduled on that motion for October 5th, and the order [PDF] granted the motion that same day. Such motions are normally granted without debate.

Psystar's motion was just denied [PDF]. It can't use its checks or bank deposit slips. I take that as a sign that Apple's recent motion to lift the stay will likely be granted shortly. Apple argued that there can be no reorganization of Psystar's business, until a court rules on whether that business is even legal. Apple, interestingly, used the SCO bankruptcy as precedent in its motion.

Full post as published by Groklaw on June 13, 2009 (boomark / email).