BlueScout Technologies Files For Chapter 7; Top Execs Resign
NAW Staff, Friday 25 January 2013 - 11:21:37
Chantilly, Va.-based BlueScout Technologies
(formerly Catch the Wind), a provider of predictive optical control systems for the wind energy industry, has announced that it has filed a voluntary petition under Chapter 7 of the U.S. Bankruptcy Code.
Earlier this month, the company warned
that its viability and ability to continue operating was dependent on securing additional capital. The company had been actively seeking to raise additional capital through debt, equity or other capital-raising efforts while also considering other strategic alternatives. However, BlueScout says it was unsuccessful in raising such additional capital or completing a strategic transaction, in large part due to ongoing legal matters.
Even though BlueScout has not paid out any damages relative to legal disputes, the increasing cost of defending against multiple legal actions by Philip Rogers and Alisa Rogers - the former founders of the company and their related entities, Optical Air Data Systems LLC and Falcon Fifty LLC - has severely impacted the company's cashflow and operations.
Accordingly, after multiple reviews of the various alternatives available to BlueScout, the board of directors concluded that voluntarily entering the Chapter 7 process would be the best available option to the company and its stakeholders. The bankruptcy filing was made in the U.S. Bankruptcy Court for the District of Delaware.
BlueScout has also announced that Susan Nickey, Martin Crotty and David Garman have resigned as directors of the company, and that John Green has resigned as chief financial officer.
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