TALLY-GENICOM FILES FOR CHAPTER 11

[Anonymous]

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.

[Author]

January 28, 2009 at 4:06 PM