Security systems company SDI Solutions filed for chapter 11 bankruptcy Sunday, with a buyout offer from a company led by former Chief Executive David Gupta, Dow Jones Daily Bankruptcy Review reported today. Gupta's PGV Solutions Midwest LLC bought secured debt of the privately held, Chicago-based SDI Solutions, to position to make a "credit bid" at a bankruptcy auction for the company, according to papers filed in the U.S. Bankruptcy Court in Wilmington, Del. SDI Solutions operates in the security system and IT industry, and provides systems integration and managed services for more than 700 customers nationwide, including state and local governments, airports, port authorities, utilities, financial institutions and commercial enterprises. It employs about 152 people. The company blamed a decline in revenue due to the loss of key contracts, and less favorable terms on contracts it was able to hold on to, for the liquidity squeeze that prompted its bankruptcy filing.
