A federal bankruptcy judge this afternoon ordered the appointment of an interim trustee to oversee Thinkstream, a Baton Rouge firm that provides the software used by law enforcement agencies nationwide—including more than 300 in Louisiana—to house arrest data and other criminal information.
Judge Douglas Dodd’s order also bars the company, which allegedly has $10 million in debt, from transferring any of its property or paying officers, directors or managers without court approval.
The order follows a hearing in Baton Rouge bankruptcy court Monday afternoon on an emergency motion filed by creditors—including TSB Ventures of Folsom—asking that a trustee be appointed to manage the company’s affairs. Thinkstream CEO Barry Bellue did not attend the hearing.
This latest development comes amid reports that Thinkstream has not paid payroll taxes in several months and may have missed some payrolls. Both Thinkstream Chairman Michael Smith, CEO of Freeport LNG Development, and CFO Morris Alexander recently left the company. Additionally, Thinkstream was forced last year to repay more than $126,000 to its 401(k) plan for employees after the U.S. Department of Labor discovered employee contributions had been mishandled. Bellue has since been prohibited from managing any other employee benefit plan.
Bellue tells Daily Report he has hired new attorneys to represent him in the bankruptcy proceeding. He says they plan to file motions in the case this afternoon, although it isn’t clear whether they will address the trustee appointment.
“It’s not the worst thing in the world to have a trustee,” he says. “My bank helped me identify some very competent attorneys in New Orleans, and they were there yesterday so we can begin to lay out a plan ourselves. I don’t know if it will eliminate the issue of a trustee or not, but we are taking some actions to have a better control of the situation.”
—Penny Font
