
Tranax Technologies Inc., an ATM manufacturer that sells machines to independent sales organizations, has filed for Chapter 7 voluntary bankruptcy, citing debts of $1 million to $10 million. Tranax said its assets equal its estimated liabilities.
The Hayward, Calif.-based company filed June 11 in United States Bankruptcy Court for the Northern District of California in Oakland. In its bankruptcy filing, obtained by ATMmarketplace.com, Tranax listed 13 creditors, including Hyosung Corp. of America.
Tranax's bankruptcy filing occurred less than a month after U.S. District Court Judge Vaughn R. Walker entered a judgment May 25, ordering Tranax to pay Hyosung America Inc. and its parent company, Nautilus Hyosung Inc., $5.01 million plus daily interest of $1,742.52 until Tranax pays its debt. Nautilus Hyosung had to wait 14 days from that date before taking action to seize property to satisfy Walker's ruling. Walker issued his ruling May 6.
Won Gee Lee, president and CEO of Tranax Technologies Inc., and Michael D. Cooper, the firm's attorney, signed the bankruptcy petition. Lee said in the document it was in the "best interest of the corporation to file a voluntary petition in the United States Bankruptcy Court pursuant to Chapter 11 of Title 11 of the United States Code."
Customer Experience Technology Buyer’s Guide 2012
Find the best partners to help you deliver the best customer experiences. The 2012 Customer Experience Technology Buyer’s Guide includes suppliers in 28 product/service categories. Download it today.
Lee added he is "authorized and directed to execute and deliver all documents necessary to perfect the filing of a Chapter 7 voluntary bankruptcy case on behalf of the corporation."
According to the U.S. Bankruptcy Code, Chapter 7 stops most collection actions against the debtor or the debtor's property. Nautilus Hyosung alleges Tranax created another company, Hantle USA, to make it difficult for Nautilus Hyosung to collect the money Tranax owes it. Grant Kim, Nautilus Hyosung's lawyer, alleged in a May 19 lawsuit Tranax's transfer of most of its assets to Hantle USA was a questionable contract.
"It was a fraudulent transfer because there is no record of Hantle paying for Tranax's business or customers," Kim says. The bankruptcy petition lists Hantle, which has offices in Fremont, Calif., as a creditor. Cooper did not return a call for comment. Tranax at one point issued a press release announcing that it changed its name to Hantle, but it retracted the statement.
Chapter 7 bankruptcy also can mean liquidation in which the debtor's nonexempt property is sold with sales' proceeds going to creditors. In addition to Hyosung Corp., Tranax's creditor list includes the Internal Revenue Service and Toyota Financial Services.
From 1998 to January 2007, Tranax Technologies served as the U.S. and Canadian distributor of retail ATMs made by Nautilus Hyosung Inc., parent company of Hyosung America, which is based in Coppell, Texas. In 2006, Nautilus Hyosung discovered Tranax had, without authorization, substituted another cash dispenser in Nautilus Hyosung ATMs and was selling the altered ATMs under the Hyosung brand name.
Nautilus Hyosung demanded Tranax stop selling the ATMs, and when it did not, Nautilus Hyosung refused to ship ATMs to Tranax. Tranax stopped paying Nautilus Hyosung's outstanding invoices, Nautilus officials said.
In 2007, Nautilus Hyosung and Hyosung America filed for arbitration with the American Arbitration Association, and in February 2010, the association ruled in favor of Nautilus Hyosung and Hyosung America. In its bankruptcy filing, Tranax lists the American Arbitration Association as a creditor.
Since the fight between the two partners occurred things have changed. In September 2008, Eltna, a Korean holding corporation, purchased Tranax. Lee took over as CEO, and Dr. Hansup Kwon, the company's longtime president and CEO, assisted in the transition to new owners and was a member of the board of directors.
Tranax manufactures eight ATMs for the retail off-premises market.
417
http://global.networldalliance.com/new/images/slideshows/show417_thumb5898.jpg
TD Bank goes net zero energy
TD Bank goes net zero energy
407
http://global.networldalliance.com/new/images/slideshows/show407_thumb5665.jpg
ATM fee disclosure stickers
ATM fee disclosure stickers
387
http://global.networldalliance.com/new/images/slideshows/show387_thumb5320.png
GetBranded ATM wraps
GetBranded ATM wraps
376
http://global.networldalliance.com/new/images/slideshows/show376_thumb5045.jpg
Express Teller Services ATM surround installations
Express Teller Services ATM surround installations
373
http://global.networldalliance.com/new/images/slideshows/show373_thumb4988.jpg
GRG Banking Vietnam Day
GRG Banking Vietnam Day
346
http://global.networldalliance.com/new/images/slideshows/show346_thumb4575.png
ATMequipment.com at the ATMIA Show 2011
ATMequipment.com at the ATMIA Show 2011
347
http://global.networldalliance.com/new/images/slideshows/show347_thumb4583.png
Opt Connect at the ATMIA Show 2011
Opt Connect at the ATMIA Show 2011
345
http://global.networldalliance.com/new/images/slideshows/show345_thumb4569.jpg
Diebold ATM is the centerpiece of international art exhibit
Diebold ATM is the centerpiece of international art exhibit
336
http://global.networldalliance.com/new/images/slideshows/show336_thumb4475.jpg
Talaris Ltd.
Talaris Ltd.
332
http://global.networldalliance.com/new/images/slideshows/show332_thumb4431.jpg
Itautec displays cash dispenser and deposit-taking ATMs
Itautec displays cash dispenser and deposit-taking ATMs
Standards for Accessible Design for ATMs
http://global1.networldalliance.com/new/images/products/4009.png
4009/Standards-for-Accessible-Design-for-ATMs
Cash Processing Technology
http://global2.networldalliance.com/new/images/products/4337.png
4337/Cash-Processing-Technology
PAI Petro Solutions
http://global1.networldalliance.com/new/images/products/4661.png
4661/PAI-Petro-Solutions
ATM Remote Monitoring, The DPL Group AC Disconnect Module
http://global1.networldalliance.com/new/images/products/4051.png
4051/ATM-Remote-Monitoring-The-DPL-Group-AC-Disconnect-Module
Data Replay Tool (DART™)
http://global2.networldalliance.com/new/images/products/4259.png
4259/Data-Replay-Tool-DART
ATM Equipment Sales
http://global2.networldalliance.com/new/images/products/ATM_Equipment_Sales_100.gif
1082/ATM-Equipment-Sales
Cassettes maintenance
http://global2.networldalliance.com/new/images/products/blank_logo.jpg
1237/Cassettes-maintenance
Imaging Solutions
http://global2.networldalliance.com/new/images/products/Imaging_Solutions_100.gif
1086/Imaging-Solutions
KingTeller - A5(08) - Standard TTW ATM
http://global1.networldalliance.com/new/images/products/1146.png
1146/KingTeller-A5-08-Standard-TTW-ATM
KAL Transaction Processing Solutions
http://global2.networldalliance.com/new/images/products/KAL_Logo_SF100.gif
1234/KAL-Transaction-Processing-Solutions
|
Inside NetWorld Alliance Network Self-Service World
|
Popular on NetWorld Alliance | Other NetWorld Alliance Sites | Global Partners |