Use of Cash Collateral

Debtor Representation

Issue: Use of Cash Collateral

In re: Input/Output Computer Services, Inc., Chapter 11, Case No. 93-12163-WCH, U.S. Bankruptcy Court, Boston, Massachusetts.

Counsel: Denzil D. McKenzie

We represented the Debtor, a $30,000,000 computer systems integration and distribution business. As part of this reorganization, we defended the Debtor's rights to use cash collateral during the Chapter 11 proceeding under a $125,000 a month operating budget, paid off two secured creditors, one owed $1,200,000 and the other $480,000, and discharged the personal guaranty of the President. In addition, we negotiated an unlimited line of credit with the Debtor's principal trade creditor, and dismissed the Chapter 11 proceedings after five (5) months by accomplishing the Debtor's objectives.