Date: Jun 30, 2011 Source: Zanesville Times Recorder (
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Teltronics Inc., the locally based telecommunications hardware and software maker, has filed for Chapter 11 bankruptcy protection, saying its sales can no longer support its operations.
The company, with roughly 130 workers, listed debts of $19.8 million and assets of only $9.1 million.
Manatee County-based Teltronics listed more than 200 creditors in a federal bankruptcy filing. Its three largest are Delco Electrical Corp. in New York, owed $480,000; GHT Co. Ltd. in Guangzhou Science City, China, owed $437,000; and Arrow Electronics in Dallas, owed $395,000.
It also owes Bradenton's Gulfcoast Property $121,000 and the Manatee County tax collector $60,000.
Teltronics said it hopes to emerge from a reorganization of its finances as a "healthier, more profitable company."
The company, whose shares traded over the counter, last reported its quarterly results in the third quarter of 2010, showing a $355,000 loss, or 3 cents per share, on revenues that were down 44 percent to $7.96 million.
Teltronics was unable to find financing and was in default on $2.9 million in loans from Wells Fargo Capital Finance, according to court filings.
The company has since obtained court permission to draw upon a $2.5 million bankruptcy loan from Wells Fargo to keep operating during the Chapter 11 proceedings.
Teltronics has hired Michael J. Worrall and his Tampa-based Solutions Management LLC as its chief restructuring officer.