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.
Released October 5, 2017