TALLY-GENICOM FILES FOR CHAPTER 11

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TALLY-GENICOM FILES FOR CHAPTER 11

 user 2009-01-28 at 4:06:29 pm Views: 64
  • #21183

    http://www.reuters.com/article/mergersNews/idUSN2745655020090127
    TallyGenicom files for Chapter 11 to aid asset sale
    NEW
    YORK, Jan 09 – Printer maker TallyGenicom LP said on Tuesday it filed
    for Chapter 11 bankruptcy protection to help facilitate the sale of its
    U.S. assets to competitor Printronix Inc.The company, which filed for
    bankruptcy in a Delaware court, asked the bankruptcy court to name
    Printronix as the lead bidder in an auction of its U.S. assets.
    TallyGenicom said the U.S. economic recession and tight credit markets
    have hurt sales of its printers used for bar codes and
    invoices.Companies are increasingly using bankruptcy court to help
    speed up mergers or sales since bankruptcy can strip out onerous debts
    or pension obligations owed by the company being bought.

    Separately,
    Printronix said it wants to buy TallyGenicom’s intellectual property,
    inventory and equipment to integrate their printer series with its
    own.The sale, if approved, is expected to take 45 days, the companies
    said. Printronix said it expects “some TallyGenicom employees could
    join Printronix, but will make final staffing decisions upon completion
    of the transaction.”

    TallyGenicom makes printers and printer
    supplies used by such industries as retail and manufacturing to create
    bar codes, labels and invoices. Printronix develops bar code technology
    used by automotive and other industries.

    In January, Printronix,
    which had been publicly traded, was bought by Pioneer Holding Corp, an
    entity controlled by San Francisco-based private equity firm Vector
    Capital.The case is In re TallyGenicom LP, US Bankruptcy Court for the
    District of Delaware, No. 09-10266.