IT company providing services despite bankruptcy, alleged thefts
Below is an excerpt. For the full article, pick up Sunday's Butler Eagle.By J.W. Johnson Jr.Cranberry Bureau ChiefDespite ongoing bankruptcy proceedings involving the company, Information Technology Procurement Sourcing continues providing services to at least one Butler County school district.The proceedings are ongoing as two former employees were charged earlier this month with financial theft and forgery while working there.The company filed for Chapter 11 bankruptcy protection in January, according to documents filed in U.S. District Court of Western Pennsylvania in Pittsburgh.As part of the initial bankruptcy filing, the company filed a motion for an automatic stay and contempt against Karns City Area and Mars Area school districts. The company provided on-site IT services for Karns City, and remote managed and on-site services for Mars.The Eagle spoke with officials at Mars Area School District, but was unable to reach officials at Karns City.Documents indicate Karns City's contract runs until December 2020, while Mars' expires June 30, 2021. The company argued the contracts require quarterly payments made prior to service being rendered, and the filing notes both districts were current with their payments.That changed in December after the districts learned of bankruptcy proceedings, with each district wishing to no longer pay in advance, according to the filing.
