Feeds

CHS seeks bankruptcy ring-fence in Web firm womb move

Messed up on distribution, time to mess up on something else

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

CHS Electronics has filed for bankruptcy protection whilst revealing plans to become a corporate incubator for Web businesses. The failed distributor yesterday said it had filed a voluntary petition for protection from creditors under Chapter 11 of the US bankruptcy code. This would give it protection while it seeks approval for its reorganisation. If the plan gets the go-ahead, it will give creditors equity or debt securities of a new Danish company, Europa IT, formed by ex-CHS CEO Mark Keough. In exchange, CHS' European subsidiaries will be sold to Europa IT. Creditors representing around $275 million in claims against CHS have agreed to support the move, CHS said. It will only work if total claims against CHS are not bigger than $500 million, and it must also get approval from the court overseeing the Chapter 11 filings – US Bankruptcy Court in the Southern District of Florida. Claudio Osorio, CHS chairman and CEO, said: "The reorganised CHS will emerge as an incubator and holding company for Internet companies engaged in business-to-business electronic exchanges, primarily within the IT industry." According to Keough: "The proposed plan offers the best solution for all parties. It allows the European operations to focus on the future as a new company, and it provides the highest value for creditors." Last November it emerged that CHS was under investigation in the US for money laundering.® Related stories CHS quizzed over money laundering claims CHS hit by foreclosure action CHS losses unveiled in full Northamber snaps up CHS' Electronics customers

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.