Due to the disruption events during the week of July 8th, 2019 (“ Disruption Date ”) Interlogic Outsourcing Inc. and related entities (“ IOIPay ”) filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Indiana.
In conjunction with this filing, our primary processing bank and lender, has agreed to provide us with additional financing to adequately support us while we are under court supervision. This will allow us to operate our business as usual and fulfill our payroll process commitments to our valued customers and other stakeholders.
We will utilize the Chapter 11 process or court supervision to implement a sale process that will provide for a change in ownership. Pursuing a sale under the Court’s supervision provides the quickest and most efficient means of maximizing value. The sale process will not take away from our focus on our customers.
As previously communicated, Najeeb Khan, the Chairman, CEO and owner, has resigned and relinquished board control over the company. Moreover, prior to his resignation, Mr. Khan appointed an independent director, Tim Daileader, for IOIPay. Thereafter he removed himself of any further involvement in the business, operations and management of IOIPay.
The independent director then appointed Daniel P. Wikel from Huron as the Chief Restructuring Officer and Interim President. Mr. Wikel, along with a very seasoned and capable management team, will lead the organization through this court supervised process.
Please know that the Chapter 11 process will not impact our relationship with our customers in any way. IOIPay is continuing to operate in the normal course of business, including continuing to provide our customers uninterrupted payroll services. We are fully committed to providing the same exceptional customer experience you have come to expect from us.
At this time, payroll and related tax functions are operating consistently with past practices and the issues are not related to security or systematic payroll breach. Since the Disruption Date, IOIPay has been focused on the following:
You can access the case website for the latest filings and updates at Cases.PrimeClerk.com/InterlogicOutsourcing. We are sincerely sorry for the disruptions from the events noted above, and we appreciate the opportunity to serve our clients and our communities now, and in the future.