Business News |
Jul 29, 2010
Evident Technologies Announces Company Restructuring Plan
Evident Technologies announced a filing in chapter 11 reorganization today and has asked the Bankruptcy court in Albany, New York to approve a debtor in financing package of $ 1.35 million. The filing was prompted by Evident’s inability to continue paying the exorbitant costs associated with a patent infringement case brought on by a large California-based life science company. The promise of substantial debtor in possession financing triggered by a chapter 11 filing was another driving reason for the bankruptcy filing. During the Chapter 11, Evident will operate under current management and continue research in nanotechnology and pursuit of commercialization of its patented technology.
“Defending a lawsuit in the Eastern District of Texas for patent infringement required us to spend at an unsustainable rate,” stated Clinton Ballinger, CEO. “The restructuring plan associated with the chapter 11 allows us to protect our business and operate the company going forward. We have reached an agreement with our secured creditors already and our customers and employees should see minimal impact.”
Chapter 11 of the Bankruptcy Code allows companies to reorganize under the bankruptcy laws of the US if they are unable to service their debt. Evident has developed a plan with major creditors for operating the company going forward.
