Medical technology firm files for bankruptcy
Cardiac Telecom Corp., a medical technology company in Greensburg, on Friday filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
"We're not going out of business," said Mel Pirchesky, who said he was named chief restructuring officer by the board of directors. He said the papers were filed in U.S. Bankruptcy Court in Pittsburgh. Pirchesky is CEO of Eagle Ventures Inc., a Pittsburgh-based venture capital firm.
Cardiac Telecom made the move about two weeks after the company's directors named Joseph S. Anderson as chief executive officer. Anderson, who had been vice president of operations since 1999, replaced Lee Ehrlichman, who had led the company since 1995.
Pirchesky was a financial founder of Cardiac Telecom Corp., after investing $3 million to $5 million in 1990. He said Anderson will remain on board, focusing on growing the business.
Pirchesky did not divulge the company's liquid assets, or its liabilities.
Cardiac Telecom petitioned bankruptcy court to allow payment of $58,000 owed to workers, covering wages earned from Aug. 13-24. The company said any delay in paying compensation will "severely disrupt" the company's relationship with employees at a time when their cooperation is critical, according to the bankruptcy petition.
Pirchesky said he's in the process of arranging "six-figure" financing from undisclosed sources.
"Even with financial uncertainty, the staff has bonded through this challenging period. We will make it through," Pirchesky said.
Cardiac Telecom was the first in the nation to develop a home-based, real-time cardiac surveillance system that monitors irregular heart rhythms. The company employs 34 workers, including 26 in Greensburg.
"This is a liquidity crisis, which the company will survive," Pirchesky said.