VC Firm Reportedly ‘Repossessing and Selling’ Photizo Group Assets
The Recycler reports that Meritus Ventures (Meritus), a U.S.-based venture-capital fund will “repossess and sell the assets of the Photizo Group following defaults on loans and interest payments of more than $4 million leaving former employees and the owners of Lyra Research high and dry.”
The Recycler states that it viewed a letter sent to Photizo creditors stating that Meritus plans to sell the assets of Photizo on or after August 18th to Virtulytix Inc., which is a new company set up by Photizo Group Founder and CEO Ed Crowley and employees of Photizo. Unsecured and junior secured creditors, including current and former employees, are said to stand to lose more than $2 million and “are seeking to get an injunction filed to prevent the repossession and sale.”
Photizo was founded in 2004 and specialized in the managed print services (MPS) industry. In 2012 Photizo acquired U.S.-based Lyra Research. The former owners of Lyra Research are said to be still owed more than $1.3 million and are said to “forfeit monies due as a result of this action.”
Crowley will retain control of the new company and has agreed with Meritus to take on and secure the Meritus debt of $4 million. The Recycler states that: “This arrangement means that the other existing creditors will receive nothing from the liquidation.”
Editors Note: Stay tuned for important new updates on this story.