ChatCom Reaches Accord on Company Financing

ChatCom Inc., Chatsworth, a 12-year veteran in the highly competitive server arena, has entered into an agreement with James P. Roche to provide new financing for the company.

Roche has conditionally agreed to provide up to $600,000 in financing to the company over the next 30 days in the form of loans that Roche will have the option to convert into majority ownership of the company’s common stock.

Roche will become a director and chief executive of the company.

Former CEO Carey Walters plans to pursue other activities, the company said.

Since mid-May, ChatCom has been funded by asset-based lender ALCO Financial Services, its lead secured creditor, after the board’s decision to enter into an assignment for the benefit of creditors.