Cerplex Seeks Bankruptcy Protection

Financially ailing Cerplex Group Inc. filed for bankruptcy protection from its creditors to speed the sale of four units after the Tustin provider of computer repair services failed to make payments due on debt securities.

In documents filed Thursday in U.S. Bankruptcy Court in Wilmington, Del., Cerplex listed $10.4 million in assets and $40.5 million in debts.

Last week, the company said a U.S. unit of Dutch rival Teleplan International NV would buy four Cerplex units in Kentucky, Massachusetts and California.

Included in the sale would be the technical support call center in Irvine. Cerplex would retain its headquarters, a business-to-business online parts operation in Irvine and a repair facility in Enfield, England.

As a condition of the transaction, Cerplex said, it voluntarily filed a bankruptcy petition to reorganize debts under Chapter 11 of the federal bankruptcy code.

The filing was a response to an involuntary petition filed last month by some holders of more than $10 million in certain Cerplex debt securities. The company had failed to make a $2.2-million payment due on the debt. Last week, the company said it would consent to the involuntary petition.

Cerplex officials in May said the company was having trouble paying its bills because of recurring operating losses.

Shares of parent company Cerplex Group Inc, which reported $93.3 million in 1999 sales, closed unchanged Thursday at 7 cents a share in over-the-counter trading.