"Pay By Touch has 20 days to respond to the petition once it is officially served on the company and it can choose to oppose, accept, or make an alternative suggestion to resolve the petition. The company is in the process of retaining bank¬ruptcy counsel. It is also seeking financing to cover its cash flow needs including past, present, and future payroll obligations," the report said. "In an internal com¬munication, Pay By Touch's general counsel informed employees that claims for wages, salary, and reimburse¬ment are not capped by the bankruptcy statute or the filing of the petition and that the company will continue working to pay salaries as and when it can."
The Nilson Report also reported that John Rogers, a founder of PayByTouch and the "owner of 64 percent of the company's stock, has filed for personal bankruptcy. Pay By Touch has raised $190 million in three rounds of funding since 2005."