Robotic Vision Systems files for bankruptcy, reports SEC action
Nashua, NH—Robotic Vision Systems Inc. (RVSI) reports that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Manchester, NH.
Nashua, NH— Robotic Vision Systems Inc. (RVSI) reports that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Manchester, NH. The company intends to continue operating its business while in Chapter 11 as a 'debtor in possession' under the code, and intends to propose a plan of reorganization to the bankruptcy court for its approval.
The company is trying to reorganize to raise sufficient cash to meet its operational needs, while also attempting to divest the assets of its Semiconductor Equipment Group (SEG). RVSI believes that divesting these assets, which include end-of-line 3-D inspection systems (lead scanning) and 2-D and 3-D tools for bumped wafer inspection, will allow it to satisfy or reinstate much of its debt and have the liquidity necessary to finance the growth of its Acuity CiMatrix business, which includes board-level machine vision systems and 2-D bar code (Data Matrix) reading products.
'We're taking these steps to restructure our business for the purpose of returning to profitability,' says Pat Costa, RVSI's CEO. 'We firmly believe that our business will better be served by selling the SEG business. By these efforts, we will be able to better concentrate on the exciting Data Matrix business, and increase necessary cash flow. We intend to continue to ship product to customers, meet future vendor commitments, and carry on our sales and marketing programs.'
William Blair & Company previously was retained to advise the company on selling its SEG business, while Marotta Gund Budd & Dzera LLC (MGBD) was retained to provide financial advice on restructuring. As part of the reorganization, Frederick Van Alstyne of MGBD was named CFO, and MGBD's J. Richard Budd was named chief restructuring officer.
In an earlier statement, RVSI adds that it was notified by the U.S. Securities and Exchange Commission (SEC) that a civil fraud action was filed against four former and one current RVSI employee relating to RVSI's restatement of earnings in May 2001.
Four of the five defendants have consented to the entry of judgments against them without admitting or denying the allegations of the SEC's complaint. RVSI agreed to the settlement without admitting or denying the SEC's factual allegations against RVSI.
'These proceedings deal with events that are now more than three years in the past. We are pleased to put this matter behind us,' adds Costa.
Control Engineering Daily News Desk
Jim Montague, news editor