Technipower Systems, Inc.(fka TECZ)

[Time To Roll]

Technipower files Chap. 11
Alexander Soule
|
Dec-11-09, 12:53 PM

After undergoing a makeover of its corporate image this year, the company formerly known as Solomon Technologies is overhauling its balance sheet as well.


In early December, Danbury-based Technipower Systems Inc. filed for Chapter 11 bankruptcy protection from creditors owed $9.1 million, including more than $900,000 claimed by its largest shareholder as compensation, which Technipower disputes.


Technipower owes five companies more than $200,000, including the New Haven office of UHY L.L.P.; none of its major creditors are in Fairfield County.


Technipower markets a power conversion system for use in vehicles, vessels and photovoltaic systems. Technipower has not reported financial results for the past year, citing annual costs of $1.2 million to do so, though the company has promised to resume regular reports at an unspecified date in the future.


Through the first three quarters of 2008, when it was known as Solomon Technologies, the company had a $5.1 million loss on $2.4 million in revenue. In a September letter to shareholders, Technipower indicated it had reduced its annual operational costs by $900,000 without indicating how. The last time the company reported its employment figures in the spring of 2008, it had 135 employees.


Since 2005, Technipower has been litigating against Toyota Motor Corp. on allegations the automaker was infringing Technipower’s “electric wheel” patent in its Prius and Highlander hybrid vehicles. Technipower is seeking treble damages, a potential windfall for the company if it would prevail in court. Toyota has filed counterclaims in the case.


Technipower has announced several sales agreements this past fall, without disclosing resulting sales revenue. Those deals include a 1.6 megawatt “instant solar” photovoltaic system sold to the Independent Day School of Middletown, Conn.; and a deal to provide power systems for an unspecified military contractor’s missile contract.


The shareholder whose compensation is under dispute is Michael D’Amelio of JMC Venture Partners L.L.C. in Boston, who could not be reached at deadline for comment. Dan Connors, president of Technipower, referred queries to the company’s attorney Jim Berman of Bridgeport-based Zeisler & Zeisler P.C., who did not immediately respond to a message.


According to a document on file with the U.S. Securities and Exchange Commission, last February the company issued 20 million shares to D’Amelio as “partial payment for services rendered as an employee to the company.” A week after the transaction, D’Amelio resigned as a vice president and director of the company, and less than a week later demanded immediate payment in stock for senior secured notes held by a company he controls.


http://www.westfaironline.com/fairfield-county-business-journal/article/6299-technipower-files-chap-11.html