Ramp plans reorganization under Chapter 11

By Sheri Kasprzak

Atlanta, June 7 - Ramp Corp. said it is gearing up for a reorganization of the company while under bankruptcy protection.

The company, which defaulted on $4.95 million in convertible debentures on May 26, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on June 2.

Ramp said that while it seeks ways to bounce back, it will continue its operations as a debtor in possession under the jurisdiction of the bankruptcy court.

"The company has already initiated steps to preserve all available capital resources and will continue to explore the possibility of selling the company or one or more of its lines of business or seeking a merger partner," said a statement released by the company on Tuesday.

The Securities and Exchange Commission announced on June 2 that Ramp had defaulted on convertible debentures it issued on Jan. 12 to Platinum Partners LP, Harborview Master Fund LP and Briarwood Investments Inc.

Because of the default, which came after the company neglected to file a quarterly report for the quarter ended March 31, Ramp is in danger of losing its listing on the American Stock Exchange. The move made June 2 to seek bankruptcy protection may be a way of keeping that listing.

AMEX required the company to submit a plan for correction by June 2 to avoid having its listing removed.

AMEX is also investigating the resignation of Andrew Brown, Ramp's former chairman, president and chief executive officer, and the resignation of an independent auditor.

Based in New York, Ramp develops and markets software for long-term care facilities and other healthcare providers.

Ramp's stock closed unchanged at $1.25 on Tuesday.

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