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Photran files for Chapter 7 bankruptcy

22 April 1999: US-based Photran Corp., a maker of optical and electrically conductive thin-film-coated products, said it was ceasing operations and expected to file a Chapter 7 bankruptcy petition as …

22 April 1999: US-based Photran Corp., a maker of optical and electrically conductive thin-film-coated products, said it was ceasing operations and expected to file a Chapter 7 bankruptcy petition as soon as possible. Photran also said it had laid off its remaining employees effective immediately. The action follows a series of setbacks that leaves Photran without money for ongoing operations, it said. Photran“s management made the decision to close down after the company“s principal secured creditor notified its board that it would not extend additional credit necessary to continue operations. The creditor cited a soft market for Photran“s coated glass products and its defaults under existing credit agreements, Photran said. At the company“s request, trading in Photran stock was halted on the Nasdaq before the market opened on the day of the announcement. Over the past year, Photran terminated most of its 100-strong work force, and pursued aggressive marketing activities in an effort to offset economic weakness in Asia, the primary market for Photran“s products, the company said. Under Chapter 7 of the US Bankruptcy Code, a company“s assets can be sold and the proceeds used to pay its debts, with the balance, if any, distributed to shareholders.

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