Colorado Customware Inc. requests approval for sale

 

FORT COLLINS – The Fort Collins software company with the name of Colorado Customware Inc., which is operating under bankruptcy protection, is seeking approval for sale of its assets to a Canadian company operating with the name of Canada-based N. Harris Computer Corp. for $3.25 million in cash.

According to documents filed in the U.S. Bankruptcy Court for the District of Colorado, the purchase price will cover one third of the company’s 10 million dollars in liabilities.

On 25th of November, the deal will be closed by the companies.

If the deal is approved, the Canadian company which sells software will purchase software and other assets from Colorado Customware.

On 17th of July, Colorado Customware Inc (CCI) filed for Chapter 11 bankruptcy protection and said it had given money to more than two hundred creditors. The bankruptcy was filed in U.S. District Court, Colorado Division, citing assets of up to $50,000 and debts of between $10 million and $50 million owed to about 480 creditors. The largest creditor, Verus Bank of Commerce in Fort Collins, is owed more than $7 million for a loan it made to the company. According to court documents, some of the other creditors include Vision Appraisal in Massachusetts at $2.6 million and Marshall & Swift in Wisconsin at $815,000 holding the largest unsecured claims.

The complete list of creditors was provided with names of banks and governmental entities from Tennessee, to a consortium of Utah counties, to the state of Washington, including Larimer County.

Initially, CCI settled its dispute with the Larimer County Treasurer’s office when the county cancelled a contract after three years of working with the software. CCI agreed to pay $250,000 in monthly payments of $3,333.33 but they paid only three payments beginning in January and then stopped.

According to court documents filed on 20thSeptember, Verus Bank has agreed to the sale. The court approved $100,000 in debtor-in-possession financing from Verus to Colorado Customware to bridge through a sale process, according to the filing of 27th of September.

A court filing signed by Colorado Customware attorney Michael Pankow states that Colorado Customware “believes the other lien holders have consented by agreeing or acquiescing in the sale”.

Chief executive officer of Colorado Customware, Lori Burge didn’t comment.

Last year, sixty jobs were cut by Colorado Customware after it completed 1 of its projects, said Burge. The software company developed software for use by county governments which complained that they had issues with software. The company had agreed to give back 250,000 dollars to Larimer County in a settlement connected to faulty software.

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