Verari Systems - The next Phoenix?

I got a bunch of calls yesterday about Verari Systems announcement that they were out of business. Long story short - they are and they will be back.

The story is that the lead investor turned down the latest term sheet and in so doing sealed the fate of the company going into what amounts to chapter 11 (technically it is an ABC). So instead of protecting the investment, they blinked first and got a goose egg instead.

From the conversations I had it sounds like the company was not managed well and as a result, they tanked. What is also apparent is that there is still a backlog of business, still solid technology in place, as well as a plan to focus on higher margin business and refocus efforts with a slimmed down team ready to execute without the albatross of former bad decisions to get in the way.

This is one company who I believe will rise from the ashes.