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Psystar Bankruptcy Tossed…. What Does This Mean?


There is a new development in the Psystar vs Apple case. Psystar’s bankruptcy case has been dismissed on the request of Psystar according to The Mac Observer:

The Judge overseeing the case, however, included the stipulation that if Psystar files for Chapter 7 bankruptcy protection Apple’s case against the company in California will not be subject to an automatic stay.

According to the court order, Psystar has also been blocked from filing for Chapter 11 bankruptcy protection for six months, and Judge Mark, the Judge overseeing the company’s bankruptcy case, is maintaining jurisdiction over the case so he can enforce the terms of his order.

An attorney familiar with this type of case told The Mac Observer “What this means is that Psystar won’t be able to use either Chapters 11 or 7 of the Bankruptcy Code to avoid trial in Judge Alsup’s court, for if at the conclusion of six months proceedings are still going forward in Judge Alsup’s court, I am certain that Judge Mark will not allow Psystar the protection of the Automatic Stay, should it file another Chapter 11 case.”

I’ll translate this for you in case you’re not a lawyer: Psystar can’t use bankruptcy to escape the iLawyers. But there’s more. It also means that creditors are free to sue Psystar at will. So their problems could quickly mount if they’re not careful. It also means that the trial that is scheduled for January 11, 2010 has gotten the green light to go ahead.

Given this new development, it will be interesting if the guns that Psystar talked about a posting on their website not too long ago have any ammo in them. At the moment, they look like they’re shooting blanks.

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