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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (92037)	7/26/2005 9:24:59 PM
From: StockDung	Read Replies (1) \| Respond to of 122087

THETRUTHSEEKER DROPS COVERAGE-> Xybernaut files for Chapter 11 Ben Hammer Staff Reporter Washington Business Journal - 11:00 AM EDT Tuesday Xybernaut, a once heavily hyped tech company hit with a federal investigation and the resignations of top executives, filed for Chapter 11 bankruptcy protection Monday in the U.S. Bankruptcy Court for the Eastern District of Virginia. The Fairfax company makes wearable computers and communications devices. Xybernaut (NASDAQ: XYBR) had its stock delisted in mid-May. The stock is now sold over the counter. "We have now filed for Chapter 11 in hopes that we can execute a strategic plan to separately license or market Xybernaut's many valuable patents and intellectual properties," chief executive Perry Nolen said in a release. "We continue to look at all alternatives with regards to reorganization, merger or sale of Xybernaut Corp." Nolen was named CEO in April after the resignations of Chairman and CEO Edward Newman and his brother Steven Newman, the president and chief operating officer. The Newmans stepped down after an internal audit uncovered what the company called an inappropriate use of corporate funds by the brothers. The U.S. Attorney's Office has opened an investigation into Xybernaut's business. The company's independent auditor, which severed ties with it last month, has contacted the Securities and Exchange Commission with information from its own audit committee investigation. Xybernaut hired a team of consultants led by Alfred Fasola, managing general partner of Boardroom Specialists of Mount Pleasant, S.C., to assist in a restructuring. The company says it has no significant lending relationships and few unpaid trade vendors. It expects to pay creditors 100 cents on the dollar through the bankruptcy process. Xybernaut says it has significantly cut operating costs, evaluated assets and liabilities with special emphasis on the intellectual property and begun discussions with potential acquirers of its units and intellectual property. The company hired IP Innovations of Charlotte, N.C., to assist in valuing patents and intellectual properties, provide strategic financing advice and contact potential bidders about interest in its assets. Xybernaut will ask the bankruptcy court to approve a plan for IP Innovations to prepare an aggressive licensing or marketing campaign for the intellectual properties. © 2005 American City Business Journals Inc.