EnvisioNet creditors sue Calif. company

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BANGOR (AP) – Creditors of the former EnvisioNet Computer Services Inc. are suing a California company that promised to buy the Brunswick-based technical support business but did not.

EnvisioNet filed for Chapter 11 bankruptcy protection in June 2001. The company’s assets, but not its operations, were sold.

On Monday, a committee of EnvisioNet’s unsecured creditors filed the lawsuit in U.S. Bankruptcy Court in Portland against Alorica of Chino, Calif. The suit states that Alorica’s failure to complete the sale caused EnvisioNet’s financial value to drop and deprived the committee of potential money.

The committee is seeking “an amount sufficient to compensate for all losses” to EnvisioNet’s estate.

“As a result of Alorica’s failure to close, the EnvisioNet estate received substantially less revenue from the sale that it would have had Alorica honored its obligations,” states the suit.

Alorica was selected by a U.S. Bankruptcy Court judge to be the buyer of EnvisioNet’s assets after an 11-hour auction on Aug. 20, 2001.

Alorica had two days to complete the $11.8 million sale or it would be called off and the other suitor during the auction, Microdyne Outsourcing Inc. of Torrance, Calif., could go to court and ask to be named the buyer.

By Aug. 27 Alorica still had not signed a contract, and the next day the bankruptcy judge named Microdyne as EnvisioNet’s buyer at a purchase price that was $1.2 million less than what Alorica agreed to pay.

Michael Pearce, a Portland attorney representing Alorica, could not be reached for comment.

EnvisioNet, once the model for what was supposed to be a growing high-tech industry in Maine, filed for Chapter 11 bankruptcy protection in June 2001.

The previous month, the company lost one of its major clients.

and laid off more than half of its 2,000-person staff in its Brunswick, Augusta and Orono locations.

More than a year ago, EnvisioNet’s founder, Heather Blease of Biddeford, and seven other shareholders were sued by the unsecured creditors’ committee for alleged mismanagement of the company’s finances. The case is pending.

AP-ES-07-16-03 1616EDT


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