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Telefile Reveals It Has Discontinued All Its Operations

October 17, 1987|DAVID OLMOS | Times Staff Writer

Irvine-based Telefile Computer Products said Friday that it ceased all operations less than three weeks after filing for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.

In a statement issued Friday evening, the Irvine-based computer maker said it discontinued business operations after the close of business on Thursday. The firm said the action followed an order by a bankruptcy court in Santa Ana revoking Telefile's permission to use the cash collateral of its secured creditors.

Telefile filed for bankruptcy on Sept. 28 after its longtime president, chief executive and chairman, Samuel V. Edens, resigned his posts and foreclosed on the firm in an effort to recover a $4.4-million debt he said the company owes him. Edens' foreclosure action forced the company to seek bankruptcy court protection.

In 1984, Edens helped Telefile obtain a Small Business Administration loan and accepted personal liability for a number of Telefile Computer Products' debts.

Monday Auction Set

Neither Telefile officials nor Edens could be reached for comment Friday.

According to the company's statement, the bankruptcy court approved a motion sought by Telefile's creditors that will allow a previously scheduled auction of Telefile's assets to proceed Monday morning.

Telefile Computer Corp., the holding company for Telefile Computer Products, reported a loss of $521,686 for the quarter ended June 30 and a loss of $2 million for the first nine months of its 1987 fiscal year.

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