We find ourselves in the middle of one of the greatest wealth transfer periods of all time. Those with wealth must decide whether they want to make transfers, and if they do, they must decide how much, to whom, when and in what structure?
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The purchase price would cover one third of the company’s $10 million in liabilities, according to documents filed in U.S. Bankruptcy Court for the District of Colorado. The companies would close the deal Nov. 25.
Ontario, Canada-based N. Harris Computer Corp., which sells software, would buy software and other assets from Colorado Customware if the deal is approved.
Colorado Customware filed for Chapter 11 bankruptcy protection July 17, estimating that it owed money to more than 200 creditors. Creditors holding the largest unsecured claims include Fort Collins-based Verus Bank of Commerce at $7.1 million, Vision Appraisal in Massachusetts at $2.6 million and Marshall & Swift in Wisconsin at $815,000, according to court documents.
Verus Bank has agreed to the sale, according to court documents filed Sept. 20. According to a Sept. 27 filing, the court approved $100,000 in debtor-in-possession financing from Verus to Colorado Customware “to bridge through a sale process.”
A Verus representative could not immediately be reached for comment.
Colorado Customware “believes the other lien holders have consented by agreeing or acquiescing in the sale,” states a court filing signed by Colorado Customware attorney Michael Pankow.
Lori Burge, chief executive officer of Colorado Customware, declined to comment. Pankow, Burge’s Denver-based attorney, was unavailable for comment Friday.
N. Harris Computer Corp. representatives did not respond to requests for comment.
Colorado Customware cut 60 jobs last year after it completed one of its projects, Burge said. Colorado Customware developed software for use by county governments, which complained that they had problems with software. The company had agreed to return $250,000 to Larimer County in a settlement related to faulty software.