Quantex bankruptcy info


Aug 12, 2000




Most of you here have by now read my opinions and warnings about Quantex Microsystems over the past several months as well as my precautionary admonishments about the numerous problems one encounters when buying a Quantex. I began this crusade against Quantex because the system they sold me was a complete lemon, they refused to repair it under their warranty, they were the rudest most outrageous people I have ever dealt with in my entire life, and they still continue to rip off innocent, unsuspecting consumers to this day. My sole motivation behind bringing about public awareness about Quantex has been only to keep other people from being ripped off like I and so many others have been. Quantex doesn't like me warning the public about them though. They (or someone claiming to be from Quantex) have threatened to sue both me and epinions to shut me up so that you won't know how bad they REALLY are. Just read through some of the comments following my opinions and see for yourself...

Today I learned that the New Jersey state Attorney General's office is investigating Quantex (FINALLY!) and may be seeking the public's comments on Quantex's... ummm... "business practices". Perhaps justice may end up prevailing after all.

Yesterday, the parent company of Quantex, Fountain Technologies, which also owns Cybermax, Inteva, Pionex, and Quantex, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy court in Manhattan. This can be verified by going to: http://ecf.nysb.uscourts.gov/cgi-bin/iquery.pl?510876139526367-L_362_0-0-22029

It's not well known that all these companies are all under the same parent company. As a matter of fact, Fountain guards that information quite carefully. All four companies are privately held corporations, but they're all run by Fountain Technologies. Trying to research any information on this company and it's corporations is virtually impossible. It's very private and they seem to have a strict policy of not communicating with either their employees nor their customers about this.

Fountain also markets thousands of Pionex systems through QVC, SAM'S Club, R.C. Willey, VCStores, and Wal-Mart stores.

Quantex Microsystems (www.quantex.com)
CyberMax Computers (www.cybermaxpc.com)
Inteva Computers (www.inteva.com)
Pionex Computers (www.pionex.com)

Fountain Technologies, Inc.
50 Randolph Road
Somerset, NJ 08873
800-888-3425
Tax id: 13-3262428
(also listed at 3 Riverview Drive, Somerset, New Jersey 08873)


At the time of this writing (8-11-00) I have no information as to what the future of Quantex and these other companies will be. I do not know now do I wish to speculate as to whether this will turn out to be a liquidation or simply a reorganization. However, the Quantex website is still up and appears to be operational. I made a call earlier to Quantex's Technical Support department and the recording told me to "call back during normal business hours", so obviously their 24/7 Tech Support is no more, even though their advertisements in the current issues of the PC mags still say it is offered 24/7.

If you already own a system manufactured by one of these companies, I unfortunately cannot tell you anything in terms of your warranty. You may want to contact the manufacturer yourself though and ask what, if anything, has changed in light of the bankruptcy filing.

If you are in the market for a new computer, you should probably check out www.QuantexSucks.org before making your purchase. I will also try to keep the site updated as to any developing news regarding the bankruptcy filing.

The CEO of Fountain Technologies is M.T. Chang. I have his email addresses, direct phone line, and home address (all legally obtained via the web), however I do not want to give them out here due to the possibility that it might lead some to harass him (even though I'm sure some would argue that he probably deserves it).

Again, my only motivation for my public warnings about this company have been done solely to warn other people about and keep them from being ripped off like I and so many others have been.

The following is a news report which was forwarded to me. Following that is the official bankruptcy filing.


-- Fountain Technologies/Ch 11 -2: Lists Assets Of $18.2M --
FFBN SOURCE: Bankruptcy

ISSUER: FOUNTAIN TECHNOLOGIES INC.
SYMBOL: X.TEM


WASHINGTON (FFBN)--Fountain Technologies Inc. filed a Chapter 11
petition in the U.S. Bankruptcy Court in Manhattan Thursday.

President M.T. Chang listed the company's assets as $18.2 million
and
liabilities as $80 million in a sworn statement accompanying the petition.
He
also noted that all of Fountain's liabilities are unsecured.

Chang said the company's accounting procedures "failed to keep pace
with the debtor's growing needs. Consequently, as of about 1999, the debtor
was unaware that it was actually losing money," and mounting pressures from
creditors and vendors prompted the filing.

The company, based in Somerset, N.J., and formed in 1984,
manufactures standard and high-end IBM-compatible personal computers.

Fountain has hired Abraham Backenroth of Backenroth Frankel &
Krinsky
LLP, New York as its bankruptcy counsel.

This is a list of Fountain Technologies' 20 largest unsecured
creditors:

Creditor Amount
--------- -------

Intel Americas Inc. $13,209,288
2200 Mission College Blvd.
Santa Clara, CA 95052

Microsoft Corp. 3,973,080
One Microsoft Way
Redmond, WA 98052

AMD 3,678,325
One AMD Place
Sunnyvale, CA 94088-3453

Federal Express 3,065,314
2690 Hus Ct.
Union, NJ 07083

Maxtor Corp. 2,609,326
510 Cottonwood Dr.
Milpitas, CA 95035

Nvidia Corp. 2,099,100
3535 Monroe St.
Santa Clara, CA 95051

Toshiba America Electronic Co. 1,930,100
1060 Rincon Circle
San Jose, CA 95131

3DFX Interactive 1,897,922
4435 Fortran Dr.
San Jose, CA 95134

Bell Microproducts Inc. 935,915
1941 Ringwood Ave.
San Jose, CA 95131

Western Digital Corp. 905,915
8105 Irvine Center Dr.
Irvine, CA 92718

Hyundai Corp. 857,327
300 Sylvan Ave.
Englewood Cliffs, NJ 07632

S3 Incorporated 688,750
2801 Million College Blvd.
Santa Clara, CA 95052-8058

Spectek 511,501
902 East Karcher Rd.
Nampa, ID 83687

Nissei Sangyo America, Ltd. 451,164
765 Ravendale Dr.
Mountain View, CA 94043

Digitan Systems, Inc. 420,771
2363 Bering Drive
San Jose, CA 95131

IBM Corp. 350,000
5600 Cottle Rd.
San Jose, CA 95193

3 Com Corp. 241,516
3800 Golf Road
Rolling Meadows, IL 60008

MCI Worldcom Wireless 240,505
P.O. Box 5211 GPO
New York, NY 10087-5211

Delta Products Corp. 234,300
5101 Davis Dr.
RTP, NC 27709

Altec Lansing 197,612
Rt. 6 and 209
Milford, PA 18337




Notice of Bankruptcy Case Filing

00-13695-brl
Office: Manhattan
Filed: 08/10/2000
Fountain Technologies, Inc.
Judge: Burton R. Lifland
Case type: bk Chapter: 11

(see:
http://ecf.nysb.uscourts.gov/cgi-bin/iquery.pl?510876139526367-L_362_0-0-22029)

A bankruptcy case concerning the debtor(s) listed below was filed under Chapter 11 of the United States Bankruptcy Code on 08/10/2000 at 8:04 PM.

Fountain Technologies, Inc.
50 Randolph Road
Somerset, NJ 08873
Tax id: 13-3262428


The case was filed by the debtor's attorney:
Abraham Backenroth
Backenroth & Grossman, LLP
885 Second Avenue
New York, NY 10017
(212) 593-1100

The case was assigned case number 00-13695 to Judge Burton R. Lifland.

The filing of a bankruptcy case automatically stays certain actions against the debtor and the debtor's property. If you attempt to collect a debt or take other action in violation of the Bankruptcy Code, you may be penalized.

If you would like to view the bankruptcy petition and other documents filed by the debtor, they are available at our Internet home page http://ecf.nysb.uscourts.gov/index.html or at the Clerk's Office One Bowling Green, Room 511, New York, New York 10004.

You may be a creditor of the debtor. If so, you will receive an additional notice from the court setting forth important deadlines.


Kathleen Farrell , Acting Clerk of Court
Clerk, U.S. Bankruptcy Court






Judge(s) for 00-13695-brl:

Burton R. Lifland
U. S. Custom House
6th Floor, Room 624
1 Bowling Green
New York, NY 10004
212 668-5663
ASSIGNED: 08/11/2000

Attorneys for case 00-13695-brl:
Abraham Backenroth
Backenroth & Grossman, LLP
885 Second Avenue
New York, NY 10017
(212) 593-1100
Fax: (212) 644-0544
representing pty
Fountain Technologies, Inc.
50 Randolph Road
Somerset, NJ 08873
(db)


U.S. Trustee
-----------------------
United States Trustee
Office of United States Trustee
33 Whitehall Street
21st Floor
New York, NY 10004
(212) 510-0500


Filing Date # Docket Text
08/10/2000 1 Voluntary Petition (Chapter 11). Order for Relief Entered. filed by Abraham Backenroth of Backenroth & Grossman, LLP on behalf of Fountain Technologies, Inc.. Chapter 11 Plan due by 12/8/2000, Disclosure Statement due by 12/8/2000, Incomplete Filings due by 8/25/2000, List of Creditors Disk due by 8/21/2000, Initial Case Conference due by 9/11/2000, (Attachments: # 1 Corporate Resolution# 2 Local Rule Affidavit)(Backenroth, Abraham) (Entered: 08/10/2000)
08/11/2000 Receipt of Voluntary Petition Filing Fee (Chapter 11). Receipt Number 108915 (Tetzlaff, Deanna) (Entered: 08/11/2000)

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