The Baton Rouge software company that operates a statewide law enforcement database owes $9.6 million to creditors who have asked a federal bankruptcy court judge to force the company into a reorganization.
It’s the second time in the past eight months that creditors have tried to push Thinkstream into Chapter 11 under the U.S. Bankruptcy Code. Thinkstream has until Tuesday to file a response.
Thinkstream operates the Louisiana Civil and Criminal Information Network, which the company says is considered to be the largest of its kind in the nation. Thinkstream’s Louisiana customers include close to 300 law enforcement agencies, district attorneys and courts. Thinkstream’s software ties the agencies together, allowing them to share information quickly and securely. The company also has law enforcement clients in California, Florida, Texas, Mississippi and Georgia.
It’s unclear how or if the legal dispute will affect Thinkstream’s customers or the Louisiana Civil and Criminal Information Network. Thinkstream officials did not respond to phone calls or emails Thursday or Friday.
Attorneys for the creditors could not be reached for comment.
Louisiana State Police spokesman Maj. Doug Cain said the agency’s tech support team is keeping tabs on the situation and will meet next week with Thinkstream.
“We don’t have any immediate concerns of any operation disruptions. But we’re certainly going to be monitoring that and asking them some questions next week during our meeting,” Cain said.
In September, Folsom-based TSB Ventures LLC and six Texas plaintiffs alleged that Thinkstream owed them $9.3 million and wasn’t making the required payments. At the time, Thinkstream was chasing a $17 million contract to operate Florida’s database of prisoners and arrest records.
In December, Thinkstream and its creditors worked out an agreement to dismiss the involuntary bankruptcy. In the joint motion to dismiss the involuntary Chapter 11 case, Thinkstream said if it won the Florida contract, the company would be in “an enviable and preferred position” to bid for similar contracts in more than 23 states.
Continuing the legal dispute would hurt Thinkstream’s chances of winning the Florida contract and similar contracts with other states, the filing says.
In February, Florida began exclusive contract negotiations with Thinkstream. But those talks ended in April after a competitor protested that Thinkstream failed to disclose the legal dispute.
Thinkstream issued a statement in April saying it settled the dispute rather than fighting a court battle that would take six to eight months to resolve.
Follow Ted Griggs on Twitter, @tedgriggsbr.