Vidikron Possibly Up For Liquidation
The future of Vidikron Technologies Group (VTG) has been up in the air since July 29 when president Flavio Peralda, COO Emilio Baj Macario and Giovanni Cozzi, who was both Marketing and Sales Executive Vice President at VTG and President of Vidikron America, announced their resignations as the company approached a Chapter 7 (liquidation) bankruptcy proceeding. The announcement of a possible Chapter 7 proceeding indicates that the company was unsuccessful in its efforts to obtain new financing and arrange an equity-for-debt swap. As of July 30, trading in VTG stock was ordered temporarily halted by the Nadsaq Exchange. Nasdaq said trading will not be resumed until VTG has ""fully satisfied"" its request for additional information. Vidikronís latest problems stemmed from a decision on the part of its banker, PNC Bank, to exercise its right to take control of all VTG cash on deposit. The bank has told VTG customers to make any payments to the bank, and not to the company. Also PNC has refused to release funds needed to meet VTGís payroll. Despite the uncertainty of the future of the Vidikron Technologies Group, Vidikron has continued to make and ship products, including the Kronos, its much-anticipated HDTV projector, which has begun shipping to dealers. A rumor has now surfaced that an ""angel"" investor has offered to pay off the company's debt and reinstate the Vidikron brand. Should a potential (as yet unnamed) investor appear at the last moment, this would enable Vidikron to avoid Chapter 7 bankruptcy. For the time being, the company is operating at status quo, according to company Chairman and CEO Phillip Seigel. With Vidikronís future in serious doubt and Ampro Corporation, another well-known name in front projectors filing Chapter 11 to reorganize its operations, the playing field in the expensive CRT-based front-projection home theatre business will no doubt continue to change radically in the weeks and months ahead. Runco International remains the leading projector manufacturer and will no doubt benefit from the difficulties plaguing the high-end projector market. What is a possible problem resulting in the potential demise of two of the major players, is a shortage of CRTs necessary to build the projectors. Currently there are shortages and suppliers may decide to completely stop production of CRTs. That would be the death nail for CRT-based projection devices, which are superior to all other display device technologies for home theatre application.