Voxel's third buyout candidate may end firm's bankruptcy woes

March 30 hearing will decide company's fate

Holography developer Voxel is once again hopeful that it will be able to resolve its financial troubles. The Laguna Hills, CA, firm has found a third acquisition candidate in 3D Perspectives International, a Provo, UT-based 3-D and graphics company.

The offer is the latest development in Voxel's ongoing effort to find a buyer as the company struggles with bankruptcy. Voxel went into Chapter 11 last year, when it lost a lawsuit with former manufacturing partner General Scanning of Watertown, MA. The firm's filing was converted to Chapter 7 and referred to a bankruptcy trustee soon after (SCAN 8/19/98).

3D Perspectives' bid came just months after proposals from two other companies had fallen through, leaving Voxel without a potential acquisition candidate. 3D Perspectives in late February offered to pay $1 million for Voxel's assets. The privately held firm's president, John Wright, established 3D Perspectives for the purpose of buying Voxel, and the two companies have entered a 24-day overbid period that will end March 30, when the deal goes to a hearing before a Santa Ana, CA, bankruptcy court. At that time, if no other parties have submitted bids for Voxel, the court will approve the sale.

If other interested parties decide to bid, they must deposit at least $1.1 million in the court before March 25. The sum will be held in escrow, and on March 30, the court will hold an auction for Voxel's assets. Voxel believes that there are still several other potential bidders, including Holographic Dimensions (HDI), which had submitted an earlier bid, according to Stephen Hart, director of R&D.

"(HDI) is one of several groups that may come up with an overbid," Hart said. "No one will show their hand until the 25th."

Voxel's purchase price will go to the company's estate, which is administered by its bankruptcy trustee, Thomas Casey. Casey will begin the process of paying off the company's bills and creditors, beginning with administrative and other expenses associated with Voxel's Chapter 7 and Chapter 11 filings, as well as a loan from HDI and Voxel employees' salaries, according to Hart.

Whoever purchases Voxel at the March 30 auction will have until April 9 to finalize details of the deal. Hart and the four other Voxel employees, including Ray Schultz, director of marketing, hope to continue in their posts.

"We've made it clear that we're here (at Voxel) because we want to continue to do this," Hart said.