Creditors Fail to Force Pinnacle Bankruptcy

The U.S. Bankruptcy Court has dismissed an involuntary bankruptcy petition filed against Irvine-based Pinnacle Micro Inc., the company said Tuesday.

The petition, filed in August by three unsecured creditors who are owed a total of about $210,000, would have forced the company into liquidation. The court dismissed the petition after the creditors declined to meet certain requirements for a hearing, including posting a bond, the company said.

The company is developing an out-of-court debt reorganization plan that would pay back its $22.4 million in debts. The payback would occur over a period as long as eight years and would not include interest payments. Creditors are currently voting on the plan.

Pinnacle Micro, which manufactures optical storage technology, has lost about $53 million since fiscal 1996.