Third Texas Company that Received State Taxpayer Funds Has Declared Bankruptcy

A third tech company that received taxpayer money through Governor Rick Perry’s Emerging Technology Fund, a business incubator, has filed for bankruptcy. 

The Associated Press discovered that Nano Tailor Inc. declared Chapter 7 bankruptcy in May, making them the third recipient of state funds to enter a debt protection plan since 2010. The total amount of failed investments for this fund adds up to $2.5 million.

Nano Tailor Inc. stated that increased performance benchmarks that were not part of the original contract led to their bankruptcy.

In 2010, Nano Tailor received $250,000, shortly after that the state took an additional $1 million of the table for full investment when the company failed to meet state standards.

If a bankruptcy attorney recommends a Chapter 7 filing, the troubled company must liquidate any assets of values and give proceeds to their creditors.

The two other start-ups to enter bankruptcy that received taxpayer funds include Thrombovision Inc., which received $1.5 million, and Starvision Technologies.

Bankruptcy isn’t always the most desirable option for a troubled business, but does give them protection from collection activities and gives them the chance to start over.

In addition to businesses, many individuals find themselves swimming in debt. Expensive medical bills and unemployment have left many people in dire financial situations, but a Texas bankruptcy lawyer can help them get relief from their debts.

Chapter 7 and Chapter 13 are two debt relief plans that allow a person to work on reducing or eliminating their liabilities. A Texas bankruptcy attorney will be able to figure out which plan is best for your needs after an initial consultation.