Kolak Corp, the Sunnyvale, California supplier of low-profile 3.5 removable hard disk drives that went to Bulgaria for some of its manufacturing, has filed for Chapter 11 bankruptcy protection, a move that it sees as the only way out of its heavy debt burden, which has inhibited its ability to secure new sources of investment without restructuring. The filing lists $21.8m in liabilities and $7m in assets. The company says it is currently shipping in volume its low profile 3.5 250Mb hard disk drive, the only half inch high removable drive on the market. Teac Co of Japan, an investor in Kalok and its other manufacturing partner, has submitted a plan to provide interim financing during the restructuring process. DZU of Stara Zagora, Bulgaria has already made a significant investment in Kalok and also submitted plans for interim financing.
