Cygnet Systems Inc, San Jose, California looks to make a quick exit from Chapter 11 bankruptcy protection, where it sought shelter after Eastman Kodak Co failed to reach agreement on buying one of its units. At its confirmation hearing this week, the optical disk storage subsystems integrator reckons it will emerge from the Chapter 11 filing financially strong, and focused on supplying its customers with products and services for the mass storage market. On August 24, the court approved Cygnet’s disclosure statement which summarises the business plan and plan of reorganisation, and instructed that the disclosure statement be sent to Cygnet’s creditors and shareholders for a vote by ballot – and it won full support of both, Cygnet says. Cygnet says it has maintained profitability through the bankruptcy process with strong orders for its Series 1800 12 jukebox products line, and that the dispute with Kodak is now behind it – but doesn’t explain how the dispute has been settled.
