Personal Communications Devices LLC Files for Bankruptcy Relief
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Personal Communications Devices LLC Files for Bankruptcy Relief

September 17, 2013


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Personal Communications Devices LLC, a broker that helps connect wireless phone companies with wireless device makers, is filing for bankruptcy, according to a report from NASDAQ News.

Sources say the company filed for Chapter 11 bankruptcy with the intention of selling its assets to Quality One Wireless LLC for $105.3 million.

Such prepackaged bankruptcy plans are relatively common in corporate bankruptcy proceedings, but this intended sale is also subject to higher bids by other companies, and it will also need to be approved by a bankruptcy judge.

In the bankruptcy petition, the company lists between $100 million and $500 million in both assets and liabilities, according to reports.

Oddly, in contrast to the typical bland court documents that typically accompany a debt relief filing, the company’s bankruptcy petition claims that its former chief executive ruined the company.

In the document, the company said that former Chief Executive Philip Christopher actively engaged in a "scheme to ruin PCD’s business," and cited this foul play as one of the primary reasons for the Chapter 11 bankruptcy filing.

In an affidavit attached to the bankruptcy filing, Chief Financial Officer Raymond Kunzmann said Christopher "conspired with several then-current PCD employees, AirTyme and Reliance, to create a competitive entity."

This entity, which allegedly competed with PCD in an unfair fashion, was boosted by Christopher’s strategy of "starting a campaign to disparage and defame PCD and its board of directors," according to the claims made in the affidavit.

Before filing for bankruptcy, PCD officials filed a lawsuit against AirTyme, one of the competitors that allegedly conspired with Christopher, in a New York state court.

This lawsuit, according to sources, has been settled, although a lawsuit against Christopher is still pending.

Of course, the alleged unfair dealings by the company’s former leader were not the only source of malaise.

The wireless industry’s shift toward major handset makers Samsung and Apple also took a large bite out of PCD’s business.

"PCD, as a supplier of non-premium and niche handsets and wireless devices, has correspondingly been adversely affected as profit margins have continued to erode," said Kunzmann.

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