SAN FRANCISCO – A bankruptcy judge last week gave Solidus Networks, also known as Pay By Touch, clearance to sell its money losing subsidiaries, some of which the company just acquired in the past three years as it built up a mini-conglomerate.
The ruling clears the way for the maker of biometric fingerprint identification technology to sell its credit card payment, check cashing and ATM development units, all of which are losing money, according to court documents. Auctions for all three businesses will be held Feb. 21, with a hearing on the sale prices to be held at the bankruptcy court on Feb. 25.
Solidus, which provides technology that allows consumers to tap into their credit union and bank accounts with the touch of a finger–instead of using a payments card–filed for bankruptcy last November amid a fight between its founder, John Rogers, and its financial backers, including Connecticut hedge fund Plainfield Asset Management.
The bankruptcy court also approved interim financing of up to $13.5 million from Plainfield.
