STRATEGIC PARTNERS
December 19, 2001
HAMILTON, Ohio – ATM service provider Mosler Inc. on Aug. 6 filed for a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Mosler ceased all operations on Aug. 3 and laid off most of its 1,800 employees, retaining only a small core group of employees to assist in the liquidation process, according to a company news release.
The company said that it has been operating with a large debt burden for some time and has faced operational challenges related to the unsuccessful implementation of a new computer system and the integration of acquisitions made over the last several years.
Mosler said that it explored a number of actions over the past year, including a sale of the company and various restructuring alternatives. The company said that despite its best efforts, it has been determined that an orderly liquidation of the business became its only alternative.
While under Chapter 11 protection, the company expects to initiate a process to sell substantially all of its assets, including real estate, machinery, inventory and equipment.
A notice to vendors published on the Mosler Web site and signed by Chief Operating Officer David Artone reads, in part: "Unfortunately, it is highly unlikely that we are able to pay any outstanding invoices on past goods and services. On behalf of the Mosler management team, we offer you and your organization our sincerest apologies for any adverse effect this action might have on your business."
A notice to customers, also signed by Artone, similarly apologizes for any negative impact on business caused by Mosler's closing. "As many of the Mosler men and women you have appreciated and worked closely with resurface throughout the industry, please welcome them back," the notice says.
