Military contractor files for bankruptcy Daedalean tries to sell operation

May 02, 1991|By Jon Morgan | Jon Morgan,Evening Sun Staff

A Howard County-based military contractor that shut down its operations last week and laid off hundreds of people nationwide has filed for bankruptcy court protection while it negotiates to sell the business.

Daedalean Inc. abruptly closed its doors and sent its workers home unpaid on Friday. The company, which has been threatened with a loss of all its government business because of the tax-evasion convictions of its chief officers, filed Tuesday for protection from its creditors under Chapter 11 of the Federal Bankruptcy Act.

The company had been negotiating with several prospective buyers but made the filing after Maryland National Bank called in a $3.6 million loan, according Daedalean's bankruptcy lawyer, Charles Docter, of Docter and Docter in Washington.

The lender had grown concerned about the company's ability to operate, in part because the Navy has initiated proceedings to "debar," or forbid the company from selling goods and services to the Navy, Docter said. The Navy took the step after Daedalean's top two officials, Alagu Thiruvengadam and Ambrose A. Hochrein, pleaded guilty late last year to income tax evasion.

Docter said the company is negotiating with the Navy also and expects a decision within days on the debarment.

Employees have been kept in the dark, receiving no official word on their status or the status of their back pay and medical benefits. The company employed 266 workers in six states.

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