Judge approves settlement of software company's Chapter 11 bankruptcy
It's been a little more than four months since software developer think3 filed for protection under Chapter 11 bankruptcy law, but a settlement has finally been approved.
It's been a little more than four months since software developer think3 filed for protection under Chapter 11 bankruptcy law, but a settlement has finally been approved.
“We determined that this was the best course of action to preserve value for think3,” Becky Roof, chief restructuring officer, told the Austin Business Journal following the company's filing in May.
The company owed between $10 million and $50 million to 200 to 1,000 creditors with assets listed at less than $10 million when it filed for bankruptcy protection, the news source states.
Judge H. Christopher Mott of the Western District of Texas, Austin Division's U.S. Bankruptcy Court, approved the settlement between think3 and Versata, a U.A.E. company based in Dubai that sued think3 in Austin's federal district court prompting the Chapter 11 filing.
The judge ruled that think3 and Versata's license agreement was negotiated in good faith, with think3's estate receiving a cash settlement of $250,000 and the ability to use and sub-license certain software without risking patent infringement liability.
The settlement also allows think3 to propose a reorganization plan that enables the companies to come together in better serving think3's existing customers.
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