PORTLAND – A BroadcastAmerica.com partner that is seeking to foreclose on the bankrupt company’s assets has asked a federal judge to consider liquidating the company.
BA Funding has asked the U.S. Bankruptcy Court to use BroadcastAmerica.com’s assets to pay creditors.
The company filed for bankruptcy protection last month under Chapter 11, hoping to buy time to reorganize the company. But Richard Olson, BA Funding’s lawyer, asked Judge James Haines to consider changing BroadcastAmerica.com’s filing to Chapter 7, which would effectively squelch any hopes the company had of survival.
A hearing will be held to discuss the motion next week, but BroadcastAmerica remained hopeful Thursday as a potential buyer met with company officials at their Portland headquarters.
“We remain optimistic that there will be a deal for the sale of some or all of this company that will generate enough money to pay creditors,” said Roger Clement, who represents BroadcastAmerica.
Late last week, the company disclosed it no longer had enough money to pay its workers, some of whom decided to remain on a voluntary basis.
A federal judge also gave a pair of key vendors permission to shut off service to the company on Friday.
One of the vendors, RealNetworks, provides technology that allows BroadcastAmerica to “stream” radio broadcasts over the World Wide Web.
The company had more than 80 employees just a few weeks ago. But a recent layoff cut that number nearly in half, and many of those who survived were reduced to part-time status, according to Clement.
Clement said that he could not identify the new suitor, but he described it as a large company that is involved in a variety of industries. “It appears to be a large, well-heeled company,” he said.