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Published on 2/8/2012 in the Prospect News Distressed Debt Daily.

Hearing set in battle over software code of former Bowe Bell & Howell

By Jim Witters

Wilmington, Del., Feb. 8 - Mail Systems Liquidation, Inc., formerly Bowe Bell & Howell, will join the buyer of its assets in a battle for the rights of software source code scheduled for Feb. 15 in the U.S. Bankruptcy Court for the District of Delaware.

Mail Liquidation, bought by Versa Capital Management, Inc. and co-investment partner Access Value Investors, Inc. and operating as Bell and Howell, LLC, will square off against Bowe Systec GmbH.

Glenn E. Siegel, representing Bell and Howell, said Feb. 8 that the source code was included in the bankruptcy court's order authorizing the sale of substantially all of Mail Liquidation Systems' assets to Versa.

Bell and Howell is seeking a contempt order against Bowe Systec for failure to turn over the code.

S. Preston Ricardo, representing Bowe Systec, said his company developed the source code in Germany, and it is being used in Germany and several other European countries.

Ricardo argued that the U.S. Bankruptcy Court lacks jurisdiction in the dispute.

And Bowe Systec argued that the claim by Bell and Howell should have been filed as an adversary action, rather than as a motion. Bowe Systec filed a motion seeking dismissal of the claim.

Judge Peter J. Walsh said the first matter to decide is whether the motion was appropriate or whether it should have been an adversary action.

Walsh scheduled a hearing on that matter for 1:30 p.m. ET on Feb. 15.

As previously reported, Bowe Bell & Howell received court approval in June to sell substantially all of its assets to Versa and Access Value Investors via credit bid.

The Wheeling, Ill., provider of high-performance document management services, filed for bankruptcy on April 18, 2011. The Chapter 11 case number is 11-11187.


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