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Lafayette-based Rocky Mountain Instrument filed in last monthg to reorganize under bankruptcy The company and its laser subsidiary makes a variety of photonics products for industry anddefense use, includinfg optics that defense giant Lockheed Martijn Corp. planned to use in its F-22 fighter currentlg under development. RMI has offices in Russia and Souty Korea in addition to itsLafayette RMI’s Chapter 11 filingw have shed a little light on the by investigatorsw of the military’s Defense Criminalp Investigative Service, or DCIS, who arrived at RMI’sx headquarters Oct.
11, 2007, and carted away computers and fileds as part of an investigation RMI lawyers said was relateeto U.S. export controls restricting technology withweaponsw applications. Steve Hahn, company executive vice president and part of the Hahn Familyt LLLP ownershipof RMI, said in an affidavitf to the bankruptcy court that an employee fileds a complaint with the DCIS that triggered the raid. The employeew claimed the company committeda “procedural violation” of export controlxs by allowing specifications for an unspecifiex product to go overseas, Hahn wrote.
RMI has sincw received government licenses to send such specification tooverseas suppliers, the company The unresolved DCIS investigation has produced no chargexs against RMI. Still, the raid triggered a 15 percent decline in business as some customers lost confidencein RMI, Hahn The recession exacerbated the salesz decline and the company lost money through he said. RMI’s revenue this year is on track to fall 16 percent to 30 percent belowthe $15.
6 million company posted in 2008, Hahn The company cites “thed single factor” for its bankruptcy filing as defaulting on its bond RMI lists American National Bank as the holderr of industrial bonds arranged in 1998 in conjunctiomn with the city of The default has threatened to put RMI’s headquarters property at 106 Lase r Dr. into foreclosure. Efforts last year by RMI to refinancer its debts or sell its laser technology busines s to recapitalize the rest of thecompangy failed, the affidavit said. RMI has asked the cour t to be able touse $1.
0 million of its available lines of credit before the end of July to keep operatin and fulfill customer orders while it reorganizes underf bankruptcy protection. More money coulcd be needed between the end of July and the end of Octoberr to keep thecompany Hahn’s affidavit said. It sought court permission to use the cash in order to holdonto employees, saying they are highlyy specialized and it woulrd take months to train any replacements RMI coulds find.
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