UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA WEST PALM BEACH DIVISION In re: Chapter 11 QSGI, INC. Case No.: 09-23658-EPK QSGI-CCSI, INC. Case No.: 09-23659-EPK QUAL TECH SERVICES GROUP, INC. Case No.: 09-23660-EPK (Jointly Administered) Debtor.
ORDER GRANTING DEBTOR-IN-POSSESSIONS’ APPLICATION FOR EMPLOYMENT OF ACCOUNTANT NUNC PRO TUNC TO OCTOBER 29, 2010 THIS MATTER came before the Court on Thursday, December 2, 2010 at 1:30 p.m. in West Palm Beach, Florida, upon Debtors-in-Possession QSGI, Inc., QSGI-CCSI, Inc. and Qual Tech Services Group, Inc.’s (collectively, the “Debtors”) Application for Employment of Accountant Nunc Pro Tunc to October 29, 2010 (D.E. # 344). The Court having reviewed the Application, and upon the affidavit of Louis V. Esposito, CPA, of Morison Cogen, LLP, and upon the representations that Louis V. Esposito, CPA, is duly qualified, holds no interest adverse to the estate in the matters upon which they are engaged upon the waiver of their pre-petition ORDERED in the Southern District of Florida on December 06, 2010.
Erik P. Kimball, Judge United States Bankruptcy Court.
Case 09-23658-EPK Doc 362 Filed 12/06/10 Page 1 of 3 Page 2 of 3 claim and the waiver of preferential payments made by Debtors to Louis V. Esposito, CPA and Morison Cogen, LLP, and that Louis V. Esposito, CPA and Morison Cogen, LLP, are disinterested persons as required by 11 U.S.C. §327(a), and have disclosed any connections with the parties as set forth in Bankruptcy Rule 2014, and that their employment is necessary and would be in the best interest of the estate, it is :
ORDERED and ADJUDGED that: 1. The Debtors’ Application is GRANTED. 2. The Debtors are hereby authorized to retain the services of Louis V. Esposito, CPA and Morison Cogen LLP (collectively the “Accountant”) as an accountant nun pro tunc to October 29, 2010. 3. The Accountant’s prepetition claim in the amount of $57,320.00 (Proof of Claim No.: 63) is hereby waived by the Accountant. 4. The Accountant shall provide the Debtors with a $20,000.00 credit to be applied to the total amount owed to the Accountant for any and all services performed by the Accountant with regard to the Debtors’ case subject to the filing and approval of a fee application on behalf of the Accountant. The aforementioned credit represents three (3) preferential payments made by the Debtors to the Accountant on April 15, 2009, May 26, 2009 and June 29, 2009 totaling $20,000.00. 5. The Accountant shall transfer the amount of $25,000.00 to the Trust Account of Michael A. Kaufman, P.A. within seven (7) days of the date of this Order. The amount of $25,000.00 represents a post-petition transfer made from the Debtors’ DIP account on September 15, 2010 to the Accountant for post-petition accounting services. The total amount of the transfer will be earmarked for the payment of the Accountant’s fees for professional services. The earmarked funds shall remain in the Trust Account of MichaelA. Kaufman, P.A. until such Case 09-23658-EPK Doc 362 Filed 12/06/10 time as the Accountant’s fee application is filed and approved by the Bankruptcy Court. 6. The transfer of the $25,000.00 from the Accountant to the Trust Account of Michael A. Kaufman, P.A., shall represent a waiver by the Accountant to the $25,000.00. 7. Louis V. Esposito, CPA and Morison Cogen, LLP shall be compensated for its services upon the filing of the appropriate fee application and approval of same by this Court.
The Debtors hereby disclose that there is a potential cause of action against IBM, Inc, and its affiliated companies, due IBM's refusal to allow Debtor to modify mainframe computers to comply with its Customers needs.
Submitted by: Michael A. Kaufman, P.A. Proposed Counsel for Debtors 1655 Palm Beach Lakes Boulevard, Suite 1012 West Palm Beach, Florida 33401
The Movant is directed to serve copies of this Order upon all interested parties and to file a certificate of service with the Court.
The main factor that lead QSGI to Chapter 11 is being addressed in the lawsuit against IBM. If the Palm Beach lawyers can reach a settlement here which allows the new company to upgrade, according to the complaint, IBM’s largest retail platform; the Z-series mainframe, the future revenues from these potential upgrades could be completely enormous!
Unfortunately, I can’t give you marketing prospective here but I can tell you the research and development lab I worked with for 15 years as a software developer in the chip design at IBM Burlington had 6 of the largest of these mainframes, DASD and peripherals in an area that would fill a city block. Before I resigned from IBM the site controller told me the assets there were worth about a billion dollars, on paper.
Market Data 
Markets 
AI
