The news has been out for a few hours already, but we were waiting for some official documentation and sources until we would publish it: Psystar, the Macintosh “clone” maker, has filed for Chapter 11 bankruptcy protection. Apparently, the small company has a debt of USD 259000. The filing was made on a voluntary basis, and according to Psystar the financial troubles arise from the economic downturn.
The petition was filed voluntary last week in the United States Bankruptcy Court for the Southern District of Florida. Also last week, Psystar filed an amended motion in the court case with Apple which provided more details about why the company is filing for Chapter 11 bankruptcy protection. “Debtor’s vendors due to their own financial problems are not being able to supply all necessary items to allow Debtor to produce their product, thus, forcing Debtor to pay higher prices for parts in order to fulfill customer orders in a timely manner and to assure satisfaction with the product,” the amendment reads, “These factors seriously contribute to the Debtor not being able to turn a significant profit in each sale.”
Chapter 11 bankruptcy by no means signals the end of a company; in fact, Psystar states in that same amendment that it plans to emerge from Chapter 11 as a stronger company. “Debtor plans on emerging from this Chapter 11 with a strong and effective plan to make an increasingly higher profit and still provide the consumer with the product that they have grown to enjoy and trust. Debtor possesses valuable intellectual property which will be implemented in a well thought out and more profitable business plan,” they say.
All this will likely slow down the proceedings in the court case between Apple and Psystar, as the bankruptcy proceedings gain precedence over the court case. We’ll also finally hear the last word on whether or not there are super secret investors behind Psystar, as the bankruptcy court will hold a hearing June 5 in which Psystar’s creditors will be named, including any possible secret ones.