Firstline Security Files Chapter 11
The move to bankruptcy might surprise some. In 2007, Firstline Security ranked 280 on the Inc. 500 list and also was ranked as No. 11 in the Top Companies in Security by Inc. Magazine. The company, which sells home security systems, reported 70,000 customers and an 887.4 percent revenue growth rate in 2006.
Chapter 11 bankruptcy is one of two bankruptcy options corporations have, and is filed by companies that need time to restructure debt. This type of bankruptcy means the company expects to return to normal business operations and sound financial security going forward. “It allows them to continue operating,” said Barry Adler, professor of law at New York University, of Chapter 11. While the filing allows companies to make a deal with creditors regarding their past debt, corporations that file Chapter 11 bankruptcy are still responsible for paying 100 percent of their bills/debt in the future, Adler explained.
It’s important to note that this company is not affiliated with Firstline Security Systems Inc. of Anaheim, Calif., which ranked as No. 78 on SDM’s 2007 Top Systems Integrators Report.
According to Bloomberg News Service, Firstline Security filed its Chapter 11 papers with the U.S. Bankruptcy Court in Salt Lake City. The security company listed debt and assets of less than $50 million in the filed documents. (In 2006, the company reported revenue of $42.6 million.)
Firstline Security did not immediately return calls to SDM staff regarding this story.