It's business as usual at TallyGenicom South Africa, which hopes to escape the crisis brought about by its US parent's filing for Chapter 11 and selling its US assets.
Country manager Peter Vieira says the company is still operating, and hoping for word that the UK-based operation is successful in its bid to be placed under adminstration, which would allow it to continue trading while assessing the best way to go forward.
TallyGenicom's US assets, including the products and brand, will be sold to Printronix.
In a letter to TallyGenicom staff members, president and CEO Daniel Adragna relates how the company is pursuing a filing under Chapter 11 of the US Bankruptcy laws.
"As is standard practice under US bankruptcy laws, we have had extensive discussions with Printronix, a leading developer, manufacturer and provider of industrial and back-office enterprise printing solutions, and have reached an agreement to sell certain US based assets to Printronix, subject to higher bids.
"Under the rules of Chapter 11, there will be a court supervised auction for certain of the US assets of TallyGenicom with Printronix serving as the lead bidder. Following the auction, the court will then be asked to formally approve the sale to the winning bidder.
"If no acceptable competing bids are received, the court will be asked to formally approve the sale of Printronix based on its lead bid. The sale of US assets pursuant
to Chapter 11 should take approximately 45 days."
However, he says the company has been unable to find a purchaser for TallyGenicom's operations outside the US, and will be instituting insolvency proceedings in accordance with local laws.
In a communication to customers, Adragna adds that Printronix has indicated that it will continue to supply consumables and spare parts for the full range of TallyGenicom printers and intends to provide continuing warranty and maintenance services.
"The filing of chapter 11 does not affect any of the TallyGenicom companies in EMEA regions," he writes. "The management of TallyGenicom Europe will be exploring options with the administrators to take the business forward in EMEA in the future."