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TurboWorx Enters Bankruptcy Hearings; Sells IP Assets for $250K to Fund Restructuring

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TurboWorx will begin bankruptcy hearings on Jan. 16, according to documents filed with the US Bankruptcy Court of the Southern District of New York in late December.
 
The company filed for Chapter 11 bankruptcy protection last May after an attempt to raise additional financing fell through [BioInform 05-19-06].
 
At the time, acting CEO Srini Chari told BioInform that the company was still operational and that it planned to restructure in order to carry forward certain “strategic” operations. It appears from the court documents that the firm still intends to remain in business.
 
TurboWorx disclosed in the documents that it has sold one patent and three patent applications to Langtree Assets for $250,000 and that it will use these proceeds “to provide the capital necessary to continue [its] business operations … and to execute the proposed plan of reorganization.”
 
The proceeds will pay the company’s delinquent federal taxes “as well as provide working capital for post-confirmation business operations,” the company said in the court documents.
 
The patents sold to Langtree (see below) represent a “portion” of the company’s IP assets, and the sale will not “impair the ability of [TurboWorx] to engage in its ongoing business operations,” the company said.
 
In addition, as part of the transaction with Langtree, TurboWorx received a “license-back” at no cost in order to use the protected technology as part of its ongoing business. 
 
Details of the company’s reorganization plans and operational strategy following the bankruptcy hearing remain unclear, however. Chari, who currently serves as chairman and CEO of technology-management firm Vetrei, is listed as president of TurboWorx on the court documents but did not respond to requests for comment for this article.
 
Officials from Langtree could not be reached for comment.

 
TurboWorx Patents Assigned to Langtree
Patent or Application Number
Filing Date
Title
6,691,109
March 22, 2001
Method and apparatus for high-performance sequence comparison
10/610,133
June 30, 2003
Method and system for dataflow creation and execution
10/700,071
Nov. 3, 2003
Method and apparatus for high-performance sequence comparison
10/994,871
Nov. 22, 2004
Method and apparatus for dataflow creation and execution

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