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SANZ Pulls the Plug: Page 2 of 3

"There were problems, they knew about them and hoped to overcome them. But that was not the case, alas," said Adam Friedman, principal of Adam Friedman Associates, which handled investor relations for SANZ. What will happen to the agreements or contracts is "unclear," he said. "Chapter 7 is a sad situation... The 8-K speaks for itself. There's nothing to be said beyond that."

Sometimes referred to as liquidation bankruptcy, Chapter 7 cancels debts and allows the bankruptcy court to sell property to pay creditors. Unlike Chapter 13 bankruptcy, it doesn't require the company to file a repayment plan.

Sun Capital was one of the major investors in SANZ; almost a year ago, the integrator said it was retaining Investor Advantage LLC to attract additional funds.

SANZ has struggled for a couple years to stem losses, and its most recent earnings report underscored its challenges. For its second quarter ending June 30, 2007, SANZ reported a loss of $4.6 million; a little less than two thirds of that ($2.8 million) it attributed to the sale of EarthWhere, a business unit that marketed geospatial data.

The company made other changes to arrest its slide. In June, SANZ unveiled a 1-for-25 reverse stock split as "part of a plan to improve its capital structure."