XiTec files for Chapter 11

May 12, 1999

Financial woes appear to have caught up with mini C-arm developer XiTec of East Windsor, CT. The company filed for Chapter 11 protection from creditors last month, but at the same time is in negotiations to win additional financing that could help the

Financial woes appear to have caught up with mini C-arm developer XiTec of East Windsor, CT. The company filed for Chapter 11 protection from creditors last month, but at the same time is in negotiations to win additional financing that could help the company get back on its feet.

XiTec has suffered from cash-flow and liquidity problems in recent months. The company announced on April 19 that it has filed Chapter 11 as part of a restructuring designed to help it reach agreement with creditors and secure new financing.

XiTec has already signed a letter of intent with a group of private investors that will give the firm about $900,000 to $1.5 million in financing. XiTec’s investors will contribute the funding in exchange for up to 1.5 million shares of preferred stock. The deal includes the option to convert the preferred shares into XiTec common stock that would result in the buyers owning as much as 44% of the company.