Phoenix Payment Enters Ch. 11 With $50M Stalking Horse

Law360, Wilmington (August 04, 2014, 6:51 PM ET) -- Electronic transaction processor Phoenix Payment Systems Inc. entered Chapter 11 in Delaware bankruptcy court on Monday aiming to sell its assets, armed with a $50 million stalking horse bid from North American Bancard LLC.

Phoenix Payment faced an ongoing cash crunch and determined a Section 363 auction was the best method to maximize value, according to a declaration by Chief Restructuring Officer Michael E. Jacoby.

The company, which listed about $16.6 million in liabilities as of the petition date, began marketing itself earlier this year, and...
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