NASHUA, N.H., Oct. 3, 2011 /PRNewswire/ --EZENIA!, Inc. (OTCBB: EZEN) announced that, to address certain working capital requirements, on September 30, 2011 it commenced a voluntary case under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. Today, the Bankruptcy Court authorized the Company to continue to conduct business as usual while it devotes renewed efforts to resolve its liquidity issues and develops a reorganization plan.
The Company is in discussions with several parties about a debtor-in-possession financing facility and plans to have a facility in place shortly. The Company currently has resources enabling it to satisfy customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.
The Court also entered an order restricting the purchase of more than 5% of the outstanding shares of the Company. Anyone seeking to purchase more than 5% of the outstanding shares of the Company will be required to apply for permission from the Court. This order is designed to protect the Federal Net-Operating Tax Loss Carry-forwards which are an asset of the Company.
All EZENIA! operations across the nation remain functional and are conducting business as usual.
"Over the past several months, EZENIA! has taken steps to reduce costs and enhance operations by introducing operating efficiencies. We believe we have a valuable business, which is fundamentally sound," said Larry Snyder, CEO of the Company. "With court protection under chapter 11, we believe that EZENIA! will be able to take advantage of its reduced overhead structure and offer a competitively priced product to maintain and increase market share."
"The Chapter 11 process allows EZENIA! an efficient process for dealing with certain liabilities which were preventing the company from investing in new products and services for our customers. We also hope that this process will allow the Company time to explore new investment and complimentary partnerships that can increase the value of our assets," said Samuel A. Kidston, Chairman of the Board.
About Ezenia! Inc.
Ezenia! Inc., founded in 1991, is a leading provider of secure real-time collaboration solutions, bringing new and valuable levels of interaction and collaboration to government and commercial enterprises. By integrating voice, video and data collaboration, the Company's award-winning products enable groups to interact through a natural meeting experience regardless of geographic distance. Ezenia! products allow dispersed groups to work together in real time using powerful capabilities such as instant audio and text chat, white boarding, screen sharing and secure file storage. The ability to discuss projects, share information, and modify documents allows users to significantly improve team communication, enhance overall situational awareness and accelerate the decision-making process in a secure environment. More information about Ezenia! Inc. and its product and service offerings can be found at the Company's website, http://www.ezenia.com.
Note to Investors Regarding Forward-Looking Statements
Statements included herein that are not historical facts may be considered forward-looking statements. You can identify these forward-looking statements by use of the words "expects," "anticipates," "estimates," "believes," "projects," "intends," "plans," "will," "may," and similar words. Such forward-looking statements, which include statements regarding the Company's business and financial outlook, expense control and cash balance, ability to obtain new bookings and renewal orders and the impact thereof, launch of new products or product capabilities, pipeline of sales opportunities and resulting effects, and long-term strategy, involve risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. These risks and uncertainties include the considerations that are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, such as the Company's liquidity concerns and history of operating losses, the evolution of Ezenia!'s market, dependence on the United States government as its largest customer and on other major customers, continued funding of defense programs by the United States government and the timing of such funding, uncertainties associated with procurement processes and on-going bidding activities for government programs, rapid technological change and competition within the collaborative software market, the Company's reliance on third-party technology, protection of its proprietary technology, customer acceptance of InfoWorkSpace and other new products including the acceptance of the Company's products in the commercial market, retention of key employees, stock price volatility, and other considerations that are discussed further in such report. You should not place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation to update forward-looking statements after the date of such statements.
SOURCE Ezenia! Inc.