What Happened To Counterpoint?
IN SEPTEMBER 1996 Counterpoint sought Chapter 11 Bankruptcy Protection to avoid being liquidated by their commercial bank who by an ex parte hearing, attempted to have Counterpoint placed into receivership.
The reason for this is unclear: there is speculation that they wanted to appear more attractive to a potential buyer and decided to eliminate their biggest loan, which was ours. Counterpoint felt that the account executive in charge of the loan - a former employee for the FSLIC - was pre-programmed to see bad faith, even in its absence. IT SHOULD BE NOTED THAT AT THE TIME THE BANK TOOK THIS ACTION COUNTERPOINT WAS CURRENT ON ITS LOAN AND HAD NEVER MISSED AN INTEREST OR PRINCIPAL PAYMENT. That is to say, Counterpoint was not in default. The bank had trouble with the company's new computer system and claimed to be unable to verify Counterpoint's inventory. Regardless of the validity of their claims, however, they had little to lose as the loan was guaranteed by the Export-Import Bank of the United States (ExIm Bank), an agency of the U.S. Federal Government. Counterpoint had no option but to follow their attorney's advice and file for Chapter 11 of the Bankruptcy Code in order to protect itself from the bank's hostile and surprising actions.
(Bankruptcy Protection under Chapter 11 is not the same as Liquidation Bankruptcy [Chapter 7]. Chapter 11 exists in order to allow viable companies who are experiencing short term cash flow or credit problems to seek protection from foreclosure on loans and work out a court approved repayment schedule.)
Counterpoint tried to continue operations, but it is extremely difficult to operate a business that is in Chapter 11. Morale suffered. On February 19, 1998, the U.S. Trustee moved to convert Counterpoint's case to Chapter 7 of the U.S. Bankruptcy Code.This was not a voluntary move by me or anyone associated with Counterpoint. Counterpoint was out of business.
The assets -- everything at the factory the fixtures, raw goods, tools, test equipment, finished product, work in progress, shipping boxes, office equipment, were sold at a public auction on April 13th, 1998. The brand names "Counterpoint," and "Elliott Audio Science & Engineering" were purchased by a competing high-end company that makes product similar to Counterpoint's. I think it is unlikely that we will ever see the brand names in use again.
Counterpoint is gone.
Getting Your Counterpoint Equipment Repaired. But fear not! I'm still here, with my lead technician, available to repair Counterpoint products. I designed it, I can fix it, and if you wish, improve it. I have created modifications and upgrades for most of the Counterpoint amplifiers and preamplifiers, and am working on more all the time.
Michael Elliott Manager
Please contact me at Alta Vista Audio via e-mail, fax, or telephone.