Paul Allen's Digeo files for Ch. 11 |
Follow the ups and downs of a new Seattle startup in a series of behind-the-scenes posts by its founders.
Digeo, the Paul Allen-backed company which developed the Moxi digital video recording device, has filed for Chapter 11 bankruptcy. The filing comes just over a month after Digeo sold off some of its assets to ARRIS Group in a deal valued at $20 million.
The filing lists the debtor as 9 OM Interactive LLC -- formerly Digeo Interactive -- and lists Microsoft co-founder Paul Allen's Vulcan Ventures as the address.
"This is not about Mr. Allen and these are not his personal debts," said Vulcan spokesman David Postman. "This is a corporate bankruptcy to begin the orderly process of winding down the company."
Postman noted that Vulcan was the largest shareholder and senior secured lender to Digeo, and the Chapter 11 filing is "the prudent approach to formally liquidating the business."
The bankruptcy was first reported by The Seattle Times. There's not much left of the company. According to the bankruptcy filing, 9 OM Interactive listed fewer than 50 creditors and estimated assets at less than $50,000.
Liabilities were listed in the range of $10 million to $50 million. Among the top creditors holding unsecured claims are Datec Inc. of Seattle with a claim of $48,206; Sonic Solutions of Santa Clara, Calif. with a claim of $28,200 and Rovi Corp. of San Francisco with a claim of $22,916. [Full filing here, PDF]
Meanwhile, ARRIS is pushing ahead with new features for the Moxi HD DVR with plans for a formal product announcement next week.
At the time of the announced asset purchase, ARRIS said it planned to keep about 75 of Digeo's employees in Kirkland. Nonetheless, the Digeo bankruptcy and asset sale marks the end to an ambitious project led by Allen. The company -- which at one point employed more than 275 people -- reportedly raised close to $110 million.
John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
READ FULL BIOGRAPHYSeattle Repertory Theatre presents Glengarry Glen Ross Feb 5th to Feb 28th
One of the largest and most renowned regional theatres in the country, Seattle Repertory Theatre produces a mix of celebrated classics, recent Broadway hits and cutting-edge new works in two theatre spaces. Now playing David Mamet's American classic Glengarry Glen Ross through February 28. Join us for Sales Rep Industry night February 11 with the Puget Sound Business Journal. For details click here.
Join the Microsoft WebsiteSpark program and get software, support and visibility – at no upfront cost. You’ll benefit from fast and easy access to current Microsoft development tools, platform technology and server products including Visual Studio, Expression Studio, Silverlight, Windows Web Server 2008 and SQL Server 2008 Web.
Seattle-based Adhost is a WebsiteSpark hosting partner providing dedicated servers with free Windows Web Server 2008 and SQL Server 2008 licensing for three years to Web developers enrolled in WebsiteSpark. Servers are located in our secure data center with SAS 70 Type II certification, 24x7 technical support and 24x7 client access.
WTIA 15th Annual Industry Achievement Awards
Held on March 4th at the Showbox SODO, this casual event celebrates and recognizes some of the best emerging and established companies in the Washington Tech Industry. The evening will feature a finalist company technology showcase and a variety of coffee, chocolate, and wine samples from local companies. More than 800 attendees are expected to be present at the celebration. Public online voting for Technology Leader of Tomorrow Scholarships will open February 3rd on the WTIA site.
We congratulate the 2010 finalists and look forward to unveiling the winners on March 4th. REGISTER NOW!