Boomerang Systems, Inc. Announces Voluntary Chapter 11 to Restructure its Balance Sheet and Secure New Financing

The Company lacks adequate working capital, because of a default by a significant lender.

FLORHAM PARK, N.J., Aug. 19, 2015 -- Boomerang Systems, Inc. (OTCQB: BMER, the "Company"), the innovator of the revolutionary RoboticValet automated parking system, today announced that it is seeking a financial restructuring by the voluntary filing of a petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the "Court"). The Company lacks adequate working capital, because of a default by a significant lender.


As part of its filings with the Court, the Company is seeking approval of post-petition financing from a group of the Company's existing senior secured note holders that have committed to finance the Company's restructuring. "Boomerang will not be discouraged by this event, and we are grateful for the strong and consistent support from our investor base. While we are obviously disappointed, our management team is highly motivated to develop and execute a plan of reorganization that will allow us to emerge in a stronger state and better able to serve our customers. We deeply regret the uncertainty and short-term impact on customers and employees," said the Company's CEO, James Gelly.

The Company has retained the services of the law firms Togut, Segal & Segal LLP and Ciardi, Ciardi & Astin to represent it in its chapter 11 case. In addition, the Company has retained the law firm Berg & Androphy, which filed a lawsuit on August 18th, 2015 in the Southern District of New York against the Company's defaulting lender.

Featured Product

Comau’s Racer3 Robot: Beauty and Passion Meet Precision and Speed

Comau's Racer3 Robot: Beauty and Passion Meet Precision and Speed

Racer3 is a powerful, high-speed, 6-axis articulated robot featuring a payload of 3kg and a reach of just 630 mm. Built from high-strength aluminum, the newest innovation in Comau robotics is lightweight and can be easily mounted on benches, walls, ceilings or on inclined supports. The third robot within the award-winning Racer family, Racer3 is Comau's response to the growing demand for fast, cost-effective robotic automation within small to medium-sized enterprises and emerging countries. Racer3 is intended for general industry use to increase productivity and reduce overall costs by automating industrial applications. It combines field-proven technology and enhanced dexterity with a keen focus on safety, design and product aesthetics. With a streamlined design and brushed metal exterior, the new powerhouse of a robot combines beauty and speed together with absolute precision and repeatability. Primary applications include assembly, material handling, machine tending, dispensing and pick & place.