EDEN PRAIRIE, MN BUSINESS WIRE December 22, 2000 Netdirect Corporation International (formerly Virtual Technology) recently announced that it will voluntarily file a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code, in order to restructure as a B2B wholesale technology provider under the name GTI (Graphics Technologies, Inc.).
Our GTI business unit formerly was profitable. We believe the reorganization will enable us to focus on this business, said Greg Appelhof, CEO of the company. Despite tremendous efforts by our employees and the loyalty of our vendors and customers, we were unable to make the retail e-commerce model work. It is now imperative that we concentrate all of our efforts on competing in the wholesale technology marketplace.
In addition, Appelhof said that GTI has restructured its management team, appointing Kent Hjerpe as president to head sales and strategic development and John Harvatine to the additional post as CEO to direct GTI through its financial restructuring process.
Our focus on the traditional GTI model, along with added infrastructure and fulfillment capabilities we're planning, will allow us to return to profitability, Hjerpe stated. The evolving wholesale technology marketplace needs a company such as GTI to partner with customers and vendors to bring increased supply chain efficiencies. We believe that our 13 years of knowledge and leadership will allow us to deliver technology products more efficiently and effectively than ever before.
Appelhof said that GTI has begun discussions with its major vendors and expects them to support GTI during the reorganization process. He also reported that GTI is negotiating the terms of debtor-in-possession financing that, subject to court approval, he expects will fund GTI's planned post-petition trade and employee obligations, as well as its ongoing operating needs during the restructuring process.