Iain Milnes, Zultys founder and president has lost his battle to takeover the remains of his failed company this week when Pivot VoIP, an independent company backed by IP telephony solutions provider Telrad Connegy of Israel, won the auction in U.S. Bankruptcy Court. Pivot agreed to pay $2.65 million plus the assumption of certain debt obligations.
The auction brings the ‘are they, aren’t they’ saga of Zultys – which abruptly shuttered its doors last summer, fired most of its employees and left much of its reseller community in disarray amid a lack of funding – to a happy ending for creditors, suppliers, customers and partners. In the UK, the core Zultys staff jumped ship to rival Shoretel.
Pivot VoIP, which was formed by former Zultys engineers, plans to continue to produce and support the company’s existing product line as well as its reseller channel.
Zultys filed for Chapter 11 bankruptcy protection in September with more than $45 million of liabilities on its balance sheet and assets of only $1.8 million.