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Xybernaut news

From: Yohan Baillot <>
Date: Thu, 15 Sep 2005 17:24:02 -0400

 From Potomac Tech

o Fairfax-Based Xybernaut Mulls Reorganization, Asset Sale

Fairfax, Va. -- Xybernaut, the troubled Fairfax-based maker of
wearable computer products, said on Thursday that its management
has met with a newly formed equity committee as part of its Chapter
11 bankruptcy proceeding in the U.S. Bankruptcy Court for the
Eastern District of Virginia. The two sides discussed several options
for the company, including reorganization or possibly selling off its
intellectual property and assets. "It is the overarching objective of both
the company and the equity committee to provide as much value as
possible to the company's shareholders," Xybernaut said in a
statement. Xybernaut's troubles begin in April, when brothers Edward
and Steven Newman, the company's CEO and president, respectively,
were forced to resign following an investigation by the board's audit
committee. Among other allegations, the company charged that
Edward Newman used "substantial" company funds for personal
expenses and failed to properly substantiate expenses charged to the
company, and that both impeded an internal investigation.
http://biz.yahoo.com/prnews/050915/nyth030.html?.v=25

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