This story has been updated since its original publication to clarify that Thinkstream Acquisition purchased Thinkstream’s assets.
A U.S. Bankruptcy Court judge has approved a liquidation plan for Thinkstream, under which a limited amount of money will be doled out to creditors—but not to more than 500 shareholders of the company due to the extensive about of debt owed—says court appointed trustee David Rubin.
“This substantially concludes the Thinkstream case,” Rubin says in a prepared statement, adding the case will officially be closed in the next few months. “Although the result is disappointing for shareholders, the plan avoids a liquidation of the company and provides some small recovery for creditors.” Rubin notes that shareholders throughout Louisiana and other states had invested capital of about $35 million.
The Baton Rouge-based tech firm, which provides software to hundreds of local, state and federal law enforcement agencies in Louisiana and other states, was forced into bankruptcy in May 2015 with more than $22 million in debt. A bankruptcy court judge approved a $1.4 million sale of the company’s assets to Thinkstream Acquisition LLC, or TAL, in late December. Rubin says TAL recently rebranded as Kologik, which will continue to be headquartered in Baton Rouge.
“We look forward to working with our existing customers, serving first responders and expanding into other industries where being able to source real-time information is essential to business operations,” says Kologik CEO Matthew Teague in a prepared statement. Teague was formerly CEO of TAL.
U.S. Bankruptcy Court Judge Douglas Dodd of the Middle District of Louisiana approved the liquidation today, Rubin says, noting the plan was also previously approved by all classes of creditors and shareholders.
Under the plan, a new liquidating trustee will be appointed assets of the company and distribute funds to creditors in accordance with priorities established by bankruptcy law.
—Steve Sanoski
