According to the company, "the new Board is overseeing the structuring of a new executive team. Tom Lumsden serves as Chief Restructuring Officer, directing activities at Solidus Networks. Eula Adams continues as COO, Robert Sigler continues as CFO, and John Rogers, founder of the Company, now functions in a non-employee director role only."
The Board is steering the Company through the involuntary filing in bankruptcy under Chapter 11, which occurred in mid-December. They are executing against a robust reorganization plan that includes streamlined operations to develop both investment and acquisition opportunities.
The new operating plan is in connection with a financing agreement made with the Company's senior lenders upon entry into bankruptcy, where the Company agreed to meet various milestones.
Several of the Company's non-core subsidiaries such as Paycheck Secure, ATM Direct, and Payment Solutions continue to operate under the protection of the bankruptcy court, and are being marketed for acquisition.
Core subsidiaries not part of the bankruptcy filing include Loyalty Acquisition (dba Capture Resource) and S&H Marketing Services (dba S&H Greenpoints).
As part of the process of focusing the direction of the Company on biometric authentication, payments and personalized marketing, activities supporting healthcare, government, online and new international (other than the Company's existing implementations with Citibank in Singapore) have been suspended.
Headcount has been reduced, facilities have been combined, and other cost-cutting measures have been implemented.
The new board also confirmed the engagement of Jefferies & Company to serve as investment banker to lead communications with potential investors and structure a transaction that will present the highest value result through the bankruptcy process.
The Company continues to maintain its patent portfolio and technology platform to serve biometric authentication and payments covering existing applications as well as potential future applications in the financial, online, healthcare, gaming and international segments. All core and non-core businesses, including consumer biometric and loyalty transactions, continue business as usual.
"We have seen Solidus Networks through a lot of changes, and we remain committed to Pay By Touch because it has the unique potential to actually change how the world transacts," said Art Petrie, Chairman of the Board.
"We have a solution that is customized and simple for consumers, economical and brand-building for retailers, and helps Consumer Packaged Goods (CPG) companies build loyalty more efficiently."
Biographies of the new Board of Directors can be found at www.paybytouch.com