There are still many individuals and businesses in Tyler, Texas and the rest of the country that are recovering from the financial impact left by the recession that swept across the globe a few years back. As a result, every month a number of individuals and businesses in Texas file for bankruptcy after failing to cope with the challenges posed by the financial meltdown.
Recently, a startup company based in Plano, Texas filed for Chapter 7 bankruptcy protection after the chief investor in the firm, who held 39.15 percent of the company’s equity, withdrew his financial support. The news may come as a surprise to many people because in January 2014, the company had more than 30 utility pilot project partners and $16 million in funding to take its optics-based grid sensor technology to a commercial scale.
According to reports, the company was founded in 2003 and found its first partner in 2005. Since then, the company has formed alliances with dozens of companies from North and South America and was on the verge of taking its product to a commercial production scale. The company was also awarded a grant of $1.5 million from the state of Texas in 2007.
The company filed for bankruptcy at the United States Bankruptcy Court of the Eastern District of Texas and cited the exit of the chief investor as the reason for financial crisis. However, the investor denied that the company’s bankruptcy filing was a result of his personal financial misfortune. According to the bankruptcy filing, the company holds assets amounting to about $5 million and had secured and unsecured debts of about $25 million.
Be it in an individual’s life or a business’s existence, financial troubles are part and parcel of everyday affairs especially due to the volatile nature of the economy. Therefore, both individuals and businesses should be prepared to take necessary action in matters of debt and make a decision only after gaining an in-depth understanding of all available options. In such circumstances, an experienced business law attorney may be able to help such people and businesses.
Source: GreentechMedia.com, “Grid Sensor Startup OptiSense Files for Bankruptcy,” Jeff St. John, March 27, 2014