FLORHAM PARK, N.J., Aug. 19, 2015 /PRNewswire/ -- Boomerang Systems, Inc. (OTCQB: BMER, the "Company"), the innovator of the revolutionary RoboticValet® automated parking system, today announced that it is seeking a financial restructuring by the voluntary filing of a petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the "Court"). The Company lacks adequate working capital, because of a default by a significant lender.
As part of its filings with the Court, the Company is seeking approval of post-petition financing from a group of the Company's existing senior secured note holders that have committed to finance the Company's restructuring. "Boomerang will not be discouraged by this event, and we are grateful for the strong and consistent support from our investor base. While we are obviously disappointed, our management team is highly motivated to develop and execute a plan of reorganization that will allow us to emerge in a stronger state and better able to serve our customers. We deeply regret the uncertainty and short-term impact on customers and employees," said the Company's CEO, James Gelly.
The Company has retained the services of the law firms Togut, Segal & Segal LLP and Ciardi, Ciardi & Astin to represent it in its chapter 11 case. In addition, the Company has retained the law firm Berg & Androphy, which filed a lawsuit on August 18th, 2015 in the Southern District of New York against the Company's defaulting lender.
About Boomerang Systems, Inc.
Headquartered in Florham Park, New Jersey, with offices in Logan, Utah and research, design, testing and production facilities in Fort Pierce, Florida, Boomerang Systems, Inc. (www.boomerangsystems.com) is in the business of marketing, designing, engineering, manufacturing, installing and servicing its RoboticValet® automated parking systems.
The Company is the developer and sole provider of the patent-pending Boomerang RoboticValet® automated parking system, which differs from legacy mono-path automated parking systems in that it uses omni-directional, battery-powered robots, and a proprietary software and robotics guidance system, to carry vehicles parked on self-supporting steel trays to and from storage spaces by driving directly on a concrete slab surface, without the use of a rail or track.
Safe Harbor Statement
Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995: The Material contained in this press release may include statements that are not historical facts and are considered "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Boomerang Systems, Inc.'s current views about future events, financial performances, and project development. These "forward-looking" statements are identified by the use of terms and phrases such as "will," "believe," "expect," "plan," "anticipate," and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Boomerang's expectations. These risk factors include, but are not limited to, the risks and uncertainties identified by Boomerang Systems, Inc. under the headings "Risk Factors" in its latest Annual Report on Form 10-K. These factors are elaborated upon and other factors may be disclosed from time to time in Boomerang Systems, Inc.'s filings with the Securities and Exchange Commission. Boomerang expressly does not undertake any duty to update forward-looking statements.