Wednesday, November 17, 2010

Rocky Mountain Instrument files Chapter 11; cites 2007 raid, recession - Denver Business Journal:

http://curedfoundation.org/genesitearticle.html
Lafayette-based Rocky Mountain Instrument filed in last month to reorganize underbankruptcy protection. The company and its lasetr subsidiary makes a variety of photonicws products for industry anddefenss use, including optics that defense giant Lockheedd Martin Corp. planned to use in its F-22 fightee currently under development. RMI has offices in Russia and South Kore a in addition to itsLafayette site. RMI’a Chapter 11 filings have shed a little light on the by investigatorzs ofthe military’s Defense Criminal Investigative Service, or who arrived at RMI’s headquarters Oct.
11, and carted away computers and files as part of an investigation RMI lawyers said was relatedto U.S. exporrt controls restricting technology withweapons applications. Steve company executive vice president and part of the Hahn Familyt LLLP ownershipof RMI, said in an affidavift to the bankruptcy courft that an employee filed a complaint with the DCIS that triggerec the raid. The employee claimed the company committeda “procedurall violation” of export controls by allowinhg specifications for an unspecified product to go Hahn wrote. RMI has since receivecd government licenses to send such specifications to overseas thecompany says.
The unresolved DCIS investigation has produced no chargewsagainst RMI. Still, the raid triggered a 15 percen t decline in business as some customers lost confidencein RMI, Hahn The recession exacerbated the saleas decline and the company lost money through he said. RMI’s revenue this year is on tracki to fall 16 percent to 30 percent belowthe $15.65 million company posted in 2008, Hahn wrote. The company cites “the single factor” for its bankruptcy filing as defaulting on its bond RMI lists American National Bank as the holder of industrial bonds arranged in 1998 in conjunctio n with the cityof Lafayette.
The defaulg has threatened to put RMI’s headquarters property at 106Lasert Dr. into foreclosure. Efforts last year by RMI to refinance its debts or sell its laser technologty business to recapitalize the rest of the company theaffidavit said. RMI has asked the courgt to be able touse $1.05 million of its available lines of crediy before the end of July to keep operatinvg and fulfill customer orders while it reorganizexs under bankruptcy protection. More money could be needed betwee n the end of July and the end of October to keep thecompanyt functioning, Hahn’s affidavit said.
It sought court permissionn to use the cash in order to holdonto employees, sayinf they are highly specialized and it would take monthws to train any replacements RMI could find.

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