Media 100 has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in United States Bankruptcy Court.
This follows news that Optibase will buy out Media 100 for $2.4 million – the sale requires the Chapter 11 case to be approved by the Court.
Optibase and Media 100 have requested that the Court enter an order setting forth sale procedures, including notice and overbid provisions which would be applicable to the transaction.
Optibase CEO Tom Wyler said: "Following approval by the Court, Optibase intends to keep Media 100 activity intact as a unit in Optibase in order to continue the development, sales, and support of the Media 100 products. We strongly believe in the capabilities of the Media 100 team of employees and their vision for 844/X and Media 100 HD, and believe that with our financial strength the Media 100 line of products will be able to realize their potential."
Media 100 CEO John Molinari said: "The Optibase deal gives Media 100 strong financial support during the Chapter 11 proceeding in order to drive the market penetration of 844/X Version 3 and the debut release of Media 100 HD. We believe that with our substantial, five-year technology investment, Optibase will acquire products that will be cutting edge and allow for strong competition in the market."
If the buy-out is not approved by the courts, and the transaction is not completed, Media 100 may be required to cease operations.