HSOA's fate...
Novato high-tech firm declares bankruptcy
Nancy Isles Nation
Article Launched: 01/09/2008 03:55:11 PM PST
SpatiaLight Inc., the troubled Novato high-tech company, declared bankruptcy Wednesday in a filing with the U.S. Securities and Exchange Commission.
Officials blamed the declaration on a lawsuit filed by the SEC in U.S. District Court in San Francisco in December that accused former CEO Robert Olins of pocketing $2.6 million in a stock scam, selling stock based on insider information and lying to regulators about a company audit.
Company officials say the lawsuit is without merit.
The company said it has been unable to restructure its debts and has not been able to obtain operating funding.
The developer and manufacturer of liquid crystal television displays was already facing administrative turmoil and a stock that plummeted to near zero after it lost its only customer last summer. It is based at Hangar 5 at Hamilton Field.
The Chapter 7 filing under the U.S. Bankruptcy Code means the company will be liquidated after a trustee is appointed to sell the assets and distribute the proceeds to creditors. It differs from a Chapter 11 bankruptcy, under which a company is reorganized with the objective of remaining in business.
The SEC filing noted the resignation of company officials, including David Hakala, acting chief executive officer, chief operating officer and board director; Michael Jin, chief technology officer and board director; and Volkan Ozguz and Kathy Barnett, board directors.
According to the filing, Hakala is working with the company's bankruptcy attorney to deliver all of the necessary documents in the bankruptcy case.
SpatiaLight, founded in 1989, manufactures high-resolution microdisplays for high-definition televisions.
In November, the company reported a net loss of $2.9 million in the third quarter, or $1.25 per share. SpatiaLight lost $13.8 million, or $9.37 a share, in the first nine months of the year.
Neither Olins, 51, of Mill Valley, nor any company official could be reached for comment. A phone listing in Novato for Hakala has been disconnected. |
