Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm News

Interphase Corporation files for Chapter 7 Bankruptcy Protection

Author: Joel R. Glucksman

Date: November 3, 2015

Key Contacts

Back

On Sept. 30, Interphase Corporation, a major information and communications technology company, announced that it had voluntarily filed for Chapter 7 bankruptcy protection.

On Sept. 30, Interphase Corporation, a major information and communications technology company, announced that it had voluntarily filed for Chapter 7 bankruptcy protection. According to a Street Insider report, the company has halted operations in its locations in North America, the Pacific Rim and Europe and plans to liquidate all of its remaining assets.

Epiq Systems, Inc., a provider of managed technology for law firms, advises that total business bankruptcy filings in the United States have increased by 5% on a year-on-year basis, to a total of 65,511.

Interphase Corp becomes insolvent

In its bankruptcy documents, Interphase Corp. cited the global economic crisis and the slowdown in certain markets, as well as its dependence on a few powerful customers, as the primary reasons it sought Chapter 7 bankruptcy protection. According to Seeking Alpha, the company also stated that significant changes in product demand, reduced spending on communications and information tech improvements, as well as the fact that an increase in lower cost competition in the market contributed to its insolvency.

Interphase reported that its debt load reached $45.9 million in 2015 due to mounting losses over the previous 12 months. In fact, the company has experienced more than $1.5 million in net losses for the year, with another $1.3 million in operating capital reductions.

For a company that once boasted Alcatel-Lucent, Flex, GENBAND, Hewlett Packard Enterprise, Samsung and Sanmina among its clientele, these recent losses proved too much to overcome.

Common stock de-listed from the Nasdax index

Following a 98.02 percent drop in its share price for the year, which included an 85.67 percent drop over the previous four weeks, the company stated that Chapter 7 bankruptcy protection was its only option. The company has continued to be beaten by the Nasdaq index this year, which drove down its market cap to just $360,000. Further, since September 2014, Interphase Corp.’s shares have plummeted 98.65 percent, with an average quarterly performance of 93.33 percent.

As a result of these massive losses, Nasdaq Stock Market announced that effective Oct. 12, Interphase Corp.’s common stock would be de-listed from the index. Leading up to that de-listing date, all trading of the company was suspended. This was due to its voluntary filing for Chapter 7 bankruptcy protection.

The company plan

Interphase Corp. filed its Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of Texas, Sherman Division. Under a Chapter 7 bankruptcy filing, a trustee will be appointed by the Office of the United States Trustee, and there will be an orderly liquidation of company assets in accordance with the Bankruptcy Code.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Business Journal NJBIZ Names Ronald S. Bienstock and William C. Sullivan, Jr. Leaders in Law post image

Business Journal NJBIZ Names Ronald S. Bienstock and William C. Sullivan, Jr. Leaders in Law

Ronald S. Bienstock and William C. Sullivan, Jr. of Scarinci Hollenbeck Recognized as 2025 Leaders in Law by NJBIZ Little Falls, NJ – March 6, 2025 – One of New Jersey’s leading business journals, NJBIZ, has recognized Ronald S. Bienstock, Partner and Chair of the Intellectual Property Group, and William C. Sullivan, Jr., Partner and […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Business Journal NJBIZ Names Ronald S. Bienstock and William C. Sullivan, Jr. Leaders in Law"
Scarinci Hollenbeck Named Among 2025 Best Companies to Work For post image

Scarinci Hollenbeck Named Among 2025 Best Companies to Work For

Scarinci Hollenbeck Named in U.S. News & World Report’s 2025 Best Companies to Work For Law Firms Little Falls, NJ  – March 4, 2025 − U.S. News & World Report, the global authority in rankings and consumer advice, has named Scarinci & Hollenbeck, LLC one of the best law firms to work for in its […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Named Among 2025 Best Companies to Work For"
Donald M. Pepe and Donald Scarinci Named to 2025 ROI-NJ Influencers: Law List post image

Donald M. Pepe and Donald Scarinci Named to 2025 ROI-NJ Influencers: Law List

ROI-NJ Continues to Feature Donald Scarinci and Donald M. Pepe on Annual Influencers in Law List Little Falls, NJ – February 26, 2025 – Partner and Chair of Scarinci & Hollenbeck, LLC’s Commercial Real Estate Department Donald M. Pepe and Founding & Managing Partner Donald Scarinci have once again been named to ROI-NJ’s Influencers: Law […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Donald M. Pepe and Donald Scarinci Named to 2025 ROI-NJ Influencers: Law List"
Tax, Trusts and Estates Partner Marc J. Comer and Three Senior Associates Join Scarinci & Hollenbeck, LLC post image

Tax, Trusts and Estates Partner Marc J. Comer and Three Senior Associates Join Scarinci & Hollenbeck, LLC

Tax, Trusts and Estates Partner Marc J. Comer and Three Senior Associates Join Scarinci & Hollenbeck, LLC Little Falls, NJ – February 20, 2025 – Scarinci Hollenbeck, LLC is pleased to announce the addition of one new Partner. The firm also welcomes three Senior Associate attorneys. The expansion strengthens the firm’s capabilities across several practice […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Tax, Trusts and Estates Partner Marc J. Comer and Three Senior Associates Join Scarinci & Hollenbeck, LLC"
Scarinci Hollenbeck Attorneys Launch New BNI Chapter in NYC post image

Scarinci Hollenbeck Attorneys Launch New BNI Chapter in NYC

Pioneering Networking Opportunities: James M. Meaney, Jesse M. Dimitro, and Christopher D. Warren Lead Initiative to Enhance Business Collaboration and Growth New York, NY – February 13, 2025 – Scarinci & Hollenbeck, LLC is proud to announce that James M. Meaney, Jesse M. Dimitro, and Christopher D. Warren have taken the initiative to establish a […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Attorneys Launch New BNI Chapter in NYC"
John M. Scagnelli Speaks at Annual Redevelopment Law Institute post image

John M. Scagnelli Speaks at Annual Redevelopment Law Institute

John M. Scagnelli Featured as Panelist on “The Impact that the Proposed Resilient Environments and Landscapes (NJ PACT) Regulations will have on Redevelopment” Little Falls, NJ – January 29, 2025 – Scarinci & Hollenbeck, LLC is proud to announce that Partner John M. Scagnelli, a member of the firm’s Environmental Law section, was recently featured […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "John M. Scagnelli Speaks at Annual Redevelopment Law Institute"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Interphase Corporation files for Chapter 7 Bankruptcy Protection

Author: Joel R. Glucksman

On Sept. 30, Interphase Corporation, a major information and communications technology company, announced that it had voluntarily filed for Chapter 7 bankruptcy protection.

On Sept. 30, Interphase Corporation, a major information and communications technology company, announced that it had voluntarily filed for Chapter 7 bankruptcy protection. According to a Street Insider report, the company has halted operations in its locations in North America, the Pacific Rim and Europe and plans to liquidate all of its remaining assets.

Epiq Systems, Inc., a provider of managed technology for law firms, advises that total business bankruptcy filings in the United States have increased by 5% on a year-on-year basis, to a total of 65,511.

Interphase Corp becomes insolvent

In its bankruptcy documents, Interphase Corp. cited the global economic crisis and the slowdown in certain markets, as well as its dependence on a few powerful customers, as the primary reasons it sought Chapter 7 bankruptcy protection. According to Seeking Alpha, the company also stated that significant changes in product demand, reduced spending on communications and information tech improvements, as well as the fact that an increase in lower cost competition in the market contributed to its insolvency.

Interphase reported that its debt load reached $45.9 million in 2015 due to mounting losses over the previous 12 months. In fact, the company has experienced more than $1.5 million in net losses for the year, with another $1.3 million in operating capital reductions.

For a company that once boasted Alcatel-Lucent, Flex, GENBAND, Hewlett Packard Enterprise, Samsung and Sanmina among its clientele, these recent losses proved too much to overcome.

Common stock de-listed from the Nasdax index

Following a 98.02 percent drop in its share price for the year, which included an 85.67 percent drop over the previous four weeks, the company stated that Chapter 7 bankruptcy protection was its only option. The company has continued to be beaten by the Nasdaq index this year, which drove down its market cap to just $360,000. Further, since September 2014, Interphase Corp.’s shares have plummeted 98.65 percent, with an average quarterly performance of 93.33 percent.

As a result of these massive losses, Nasdaq Stock Market announced that effective Oct. 12, Interphase Corp.’s common stock would be de-listed from the index. Leading up to that de-listing date, all trading of the company was suspended. This was due to its voluntary filing for Chapter 7 bankruptcy protection.

The company plan

Interphase Corp. filed its Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of Texas, Sherman Division. Under a Chapter 7 bankruptcy filing, a trustee will be appointed by the Office of the United States Trustee, and there will be an orderly liquidation of company assets in accordance with the Bankruptcy Code.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: