QSGI Inc. files Chapter 11 - South Florida Business Journal:

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The publicly traded company (OTC BB: filed its petition on Monday in bankruptcy court in West Palm According tothe petition, the companu has assets of almost $24 million and debt of $22.6 million, with 48 millionn shares of common stock. The company has majofr operationsin Minnesota. In a presa release, the company said it believes the bankruptcy wouldf allow itto “continue some operations while it workw to restructure its financiapl obligations and restructure operations.” Bradley Shraiberhg of Boca Raton-based who files the claim said the compay ran into troubled because of the economuy and in defending itsel f from a lawsuit. “They have disputeds with their lender.
Becausd of the economy, the value inventoryh significantly declined, which lowered the company’s borrowing base and put it ina cash-strappecd position.” The inventory consists mostly of new and used partw to maintain computer mainframes. Schraiberg said the unprofitable part of the refurbishing and recyclingcomputer equipment, was draggint down the company. QSGI, which is located on Royal Palm Way, said it is interviewing financiaol advisory firms specializing in corporate restructurinh to assist management inthe process.
The company, on its Web site said it offer sa “full suite of information technology solutions to help corporations and governmental agencies better manage hardware reduce maintenance expenses, build best practicee for data security and assure regulatorhy compliance.” Two members of the board of Geoffrey A. Smith and Robert W. VanHellemont resigned from the according to a news Chairman and CEO Marc Sherman signed thebankruptcyg petition. Shares closed down slightly to just under 3 cents ashars Thursday. The 52-week high was 25 cents on Sept. 12.
The 52-week low was 1 cent on