Wave Systems in Lee files for bankruptcy
LEE — Wave Systems Corp., a developer of software for data protection systems, has filed for Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Delaware, according to documents filed with the Securities and Exchange Commission.
The company filed for bankruptcy on Monday. In accordance with the filing, a trustee will be appointed to assume control of Wave Systems, and the publicly traded company's assets will be liquidated. Wave Systems is located at 480 Pleasant St.
The company's board of directors had spent "considerable time and effort" attempting to pursue and complete strategic alternatives to finance, restructure or sell the company, but it was unsuccessful, according to the SEC filing.
The board "concluded that no viable options remained for continuing operations, and that the Chapter 7 case is the only alternative available."
Wave Systems CFO/Secretary Walter A. Shepherd, who joined the company in 2014, has been named the firm's "designated representative" in the bankruptcy filing, according to court documents. He could not be reached for comment.
Wave has hired the Delaware law firm of Young, Conaway, Stargatt and Taylor to serve as legal counsel.
In July 2015, Wave's board of directors and senior management had initiated a global restructuring of the company's business operations that reduced the firm's global workforce by approximately 60 percent, from 133 employees to 54.
According to MarketWired, Wave's board and management took such action because they determined the company could no longer avoid deep staff cuts while facing difficulties in completing large enterprise sales engagements for the firm's hardware-rooted security solutions.
Founded in 1988, Wave Systems was the first company to pioneer hardware-based personal computer security that provided software to security challenges, namely data protection, strong authentication and network access control, in additional to the management of all those functions.
Wave Systems had been a viable entity as recently as 2011 when it purchased an Israeli company for $12.8 million. Wave Systems also received $5.2 million in additional license and maintenance orders from a major U.S. automaker that year to manage its global fleet of employee laptops.
When Wave purchased the Israeli firm Safend Ltd., in September 2011, the company had 240 employees and maintained offices in Princeton, N.J. and Cupertino, Calif.
According to court documents, Wave Systems has 31 individual creditors that are listed as Berkshire County residents. Thirteen of those creditors live in Pittsfield.
Lee Town Administrator Robert Nason did not return a telephone call seeking comment.