Thinkstream—a Baton Rouge software firm forced into Chapter 11 bankruptcy by creditors owed millions of dollars—is now asking a judge to convert the case to a voluntary bankruptcy in hopes of avoiding a trial scheduled for July 20.
The motion was filed today in Baton Rouge federal bankruptcy court by two New Orleans attorneys whose firm, Taggart Morton, also represents one of Thinkstream’s major creditors, First National Bank of Commerce in New Orleans. The bank allegedly is owed $6.9 million, according to filings in the case. In a separate motion, attorney Barry Grodsky notes that the firm has obtained consent from both Thinkstream and First NBC Bank, “waiving all actual and potential conflicts of interest.”
Thinkstream’s current attorney, Edward Gonzales III, has asked to be removed from the case. According to Grodsky, he will be paid $250 an hour and his partner, Donald Miester Jr., will be paid $225 an hour, with Thinkstream CEO Barry Bellue footing the bill.
A hearing on the motion to convert to voluntary bankruptcy is scheduled for 9 a.m. Aug. 12.
In a ruling issued today, U.S. Bankruptcy Judge Douglas Dodd also confirmed the legitimacy of Thinkstream’s nearly $10 million debt to TSB Ventures of Folsom—the company that sought to force the tech firm into bankruptcy—declaring it is “not subject to bona fide dispute.”
Also today, a new creditor emerged: Eleven Hundred Land Company Inc., whose president is Harry “Skip” Philips Jr., managing partner of Taylor Porter law firm, according to records in the Louisiana Secretary of State’s Office. The company’s officers include Taylor Porter partners A. Michael Dufilho, Cynthia Amedee and Robert Barton. Their motion offers no details on what Eleven Hundred Land Company is owed.
Thinkstream’s apps are used by nearly every law enforcement agency in Louisiana, as well as those in other states. It’s also used at the federal level by the ATF, FBI, Drug Enforcement Administration, U.S. Marshal and the Coast Guard. Read more about Thinkstream’s financial troubles in the new Business Report cover story, “Troubled Empire.”
—Penny Font
