On September 29, 2017, COPsync filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Louisiana. This DOES NOT mean we are going out of business. COPsync has faced challenges in the past year to include development and installation of legal updates, product updates, and customer service needs. In addition, COPsync has struggled to pay its creditors, employees and debt obligations. The Board of Directors authorized the filing of the Chapter 11 petition to definitively address these challenges. Below, we have answered some common questions we believe many of you will have in regards to this process.1. Why did the Company file bankruptcy?
COPsync has made several announcements in recent months regarding restructuring the Company by eliminating overhead and reduction in force. The Chapter 11 process will allow COPsync to complete comprehensive financial restructuring.2. What is Chapter 11?
Chapter 11 refers to a chapter of the Bankruptcy Code. Chapter 11 provides an opportunity for companies to reorganize debts while continuing day-to-day operations.3. How can I stay informed of the bankruptcy?
No. COPsync intends to continue operating throughout the reorganization process. In conjunction with the filing, COPsync filed a variety of “first day motions” which will allow the Company to continue operations in the ordinary course. These motions include requests to make wage and salary payments and to obtain debtor-in-possession (DIP) financing to support the Company’s operational needs. The Company hopes to begin negotiations swiftly to ensure the Company remains attentive to keeping COPsync technology functioning for its nearly 75,000 users across the US that depend on its technology to conduct business and keep communities and officers safe.5. What should customers expect throughout this process?
COPsync services and support for our services should improve with financing from the Chapter 11 process. When a bankruptcy case is filed, the “automatic stay” immediately goes into effect. This prohibits many actions which would negatively impact the bankruptcy estate. This means COPsync will continue to provide service and support to customers, and customers and vendors are required to continue with the terms of their contracts, including making payments and providing services to COPsync. For example, you cannot cease performing if you are under contract where you owe obligations to COPsync and its owes obligations to you. Automatic stay violations can lead to serious consequences, including an award of damages and attorneys’ fees. If you have questions about your specific rights, please seek advice of counsel.
We appreciate all of our customers who depend on COPsync to save officers lives and keep communities safer.
We will be holding a series of webinars designed to educate and inform our customers on the state of the business and our plans moving forward. Due to the potential for large numbers of customers to be on the webinar at the same time, we will not be taking live questions during them. However, we encourage our customers to email us any questions they may want to be answered during the webinar. General questions that would be of interest to most customers will be answered as part of the presentation. Questions related to a customer’s particular situation will be addressed on an individual basis with a follow-up phone call by senior executives of the firm.
Released October 5, 2017