Uni-Pixel, Inc. files for Chapter 11 Bankruptcy Protection
Uni-Pixel, Inc. and Uni-Pixel Displays, Inc. (together, “Uni-Pixel” or the “Debtors”) filed petitions for relief under chapter 11 of the Bankruptcy Code on August 30, 2017 in the Northern District of California. Uni-Pixel has retained McNutt Law Group LLP as its general bankruptcy counsel and Crowell & Moring LLP as special counsel to assist with the sale of the assets or securities of this publicly traded company.
UniPixel, Inc. (NASDAQ: UNXL) develops and markets high performance metal mesh capacitive touch sensors for the touchscreen and flexible displays markets. On August 24, 2017 the Company filed a Form 8-K announcing that the board of directors of Uniplex authorized the company to file a voluntary petition for relief under Chapter 11 bankruptcy. All the directors of the Company other than Jeff Hawthorne resigned effective August 24, 2017.
As stated in their August 25, 2017 press release,
[Uni-Pixel] is obligated by the Delaware Chancery Court to advance expenses for the defense of its two former executive officers Reed Killion and Jeffery Tomz. A year ago on August 22, 2016 Messrs. Killion and Tomz had an action brought against them by the Securities and Exchange Commision (SEC), in their defense they filed an action against the company. The company disputed the 2016 expenses as “unreasonable,” but was ordered to pay some of the disputed fees, and was unable to reach a resolution with the former executives, who in turn moved to seek recourse in the Delaware Chancery Court, including seeking to have the company liquidate assets to provide funds for the advancement of expenses. On August 28, 2017, after conducting a hearing on August 25, 2017, the Court of Chancery of the State of Delaware entered a final partial judgment against the Company and in favor of the Company’s two former executive officers, pursuant to which the Chancery Court determined that Messrs. Killion and Tomz were entitled to an advancement of expenses by the Company in an amount equal to an aggregate of $1,404,598.70, to their defense against the Securities and Exchange Commission.
Uni-Pixel intends to use bankruptcy reorganization process to seek to sell assets including manufacturing equipment, research and development equipment, intellectual property assets.
Cristina Lipan is a bankruptcy attorney and partner with the law firm of Shipkevich PLLC. Cristina is admitted in the Southern and Eastern Districts of New York and regularly practices before the United States Bankruptcy Court. For more information on this matter, you can reach Cristina at 646-867-0098 or at firstname.lastname@example.org
-  Voluntary Petition for Non-Individuals Filing for Bankruptcy, Doc. No. 1, Case No. 17-52100, N.D. Cal. Filed August 30, 2017 (the “Uni-Pixel Inc. Petition”); Voluntary Petition for Non-Individuals Filing for Bankruptcy, Doc. No. 1, Case No. 17-52101, N.D. Cal. Filed August 30, 2017 (the “Uni-Pixel Displays Petition”) (together, the “Petitions”).
-  Id.
-  Grant, Allen, UniPixel, Inc. Announces Form 8-K Filing Today, UniPixel Aug. 25, 2017, available at http://www.unipixel.com/news-single/unipixel-inc-announces-form-8-k-filing-today/.
-  Id.
-  Id.
-  Id.
-  Id.
- Image credit: ebayink via CC Licensing