Former employees buy Zultys in bankruptcy auction

Zultys Technologies, a VoIP hardware company abruptly driven into Chapter 11 this summer, was bought at auction this week by a company founded by a group of its former engineers. Pivot VoIP paid $2.6 million plus the assumption of some debt for Zultys, which owed $2.75 million in back wages and more than $41.8 million in unsecured claims. Zultys' former president has pressed for a quick auction, hoping to get raise enough money to start again. But he was outbid by his former employees, who were backed by the Israeli solutions provider Telrad Connegy. Zultys Web site remains up and active--though there is no mention of the bankruptcy or its resolution.

For more information about the Zultys bankruptcy:
- check out this TMCNet article