crumbling of Newer Technologies Inc. in late December, a number of upgrade card makers have picked up the crumbs of what are considered some of the most talented engineers and designers in the business, with one company publicly announcing the news.
Sonnet Technologies Inc.
announced Thursday it has hired “all key engineering personnel” of Newer effectively doubling its engineering and development team. Sonnet press spokeswoman Joy Hsu confirmed Thursday that the “entire remaining team (from Newer), including former vice president of engineering, Darryl Hinshaw, as well as hardware, software and testing engineers will be joining Sonnet.”
The hirings give Sonnet what it considers “a clear advantage in solidifying and advancing its worldwide position as the leader in Macintosh upgrade products.”
In a statement, Hinshaw said he is happy to keep the long-standing Newer engineering team together, and that they are all pleased to be able to continue to develop Mac products. As soon as the Wichita office space is set up, the former Newer engineers will begin working on Sonnet’s latest projects.
Hsu would not comment on the exact number of Newer employees hired. As for Sonnet acquiring technologies or inventory of the now-defunct Newer, she said, “we are evaluating what’s available and beneficial to us.”
Roger Kasten Jr., Newer’s former senior vice president of strategic development, was not among those hired by Sonnet.
Sonnet will not be the only company reaping the benefits of former Newer employees. MacCentral has learned that some members of the team will not be joining Sonnet, but instead have been offered and accepted positions with another upgrade maker. Specifics of those hired and by whom were not disclosed publicly.
A number of upgrade makers have and are currently in talks with Newer executives about possibly buying technologies, inventory or components in what has been described as a “fire sale” for remaining parts of the once-thriving upgrade maker.
Newer filed for Chapter 7 liquidation bankruptcy on January 10 in U.S. Bankruptcy Court for the District of Kansas in Wichita, after shareholders met and voted unanimously for bankruptcy two days prior. According to the bankruptcy petition, the company claimed assets of $1.12 million and debts of $26.3 million.
The numbers clearly reflect the fact that Newer was unable to get out of its $14 million debt which lead to it selling an equity partnership to Tri-M Technologies Limited of Singapore last February. If anything, the financial numbers show the company sustained even more debt in the ten months it remained in business. Tri-M was given control of Newer’s board of directors, 15 percent of its stock outright, and another 45 percent of stock through subordinated debt agreements in exchange for an undetermined influx of funds to keep the company operational.