Computer Company Psystar Files for Chapter 11 Bankruptcy

Psystar, the maker of the Open Computer, has filed for Chapter 11 bankruptcy protection.

The company, which is more than $250,000 in debt, blames its financial troubles on the poor economy.  According to court documents filed by the company, debtor sales have been affected by a drop in consumer spending.  The economy has also caused creditors to tighten up their terms and become more demanding.

The company currently owes money to shipping companies, the IRS, and the law firm of Carr & Farrell.

Psystar is also blaming its vendors who are struggling with financial problems, which resulted in Psystar having to pay higher prices for parts. 

Psystar, which sells desktops and laptops running on Mac OS X, was recently sued by Apple for copyright infringement.  That lawsuit has been temporarily suspended, pending Psystar's bankruptcy.  But once the bankruptcy has been sorted out, the lawsuit will resume.

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