The future of Vidikron Technologies Group (VTG) as a going concern is up in the air, and its board is scheduled to meet tomorrow (July 30) to consider a proposal for a Chapter 7 (liquidation) bankruptcy proceeding.
The plan for the meeting and the resignations of VTG president Flavio Peralda, COO Emilio Baj Macario and Giovanni Cozzi, who was both marketing and sales executive VP at VTG and president of Vidikron America) were all announced early today.
In reaction, 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.
Earlier this week VTG announced that its banker, PNC Bank, had exercised its right to take control of all VTG cash on deposit and has told VTG customers to make any payments to the bank, and not to the company. VTG also has said PNC has refused to release funds needed to meet its payroll.
As previously reported on www.TWICE.com, VTG said it was considering a Chapter 11 filing if plans to obtain new financing and arrange an equity-for-debt swap could not be implemented. The announcement of a possible Chapter 7 proceeding indicates that it has so far been unable to meet its need for a new capital infusion.