Hytera America and Hytera Communications America (West) filed for chapter 11 bankruptcy this afternoon in a move the company described as a “routine financial restructuring” to address financial issues associated with ongoing litigation and the impact of the COVID-19 pandemic on its U.S. business, UrgentComm.com reported. Hytera filed voluntary petitions for chapter 11 bankruptcy relief in the U.S. Bankruptcy Court for the Central District of California “for the purpose of preserving its U.S. business operations,” according to an announcement posted today on the Hytera America web site. Hytera America’s bankruptcy filing was executed less than three months after U.S. District Court Judge Charles Norgle of the Northern District of Illinois entered a judgment in March requiring Hytera Communications to pay Motorola Solutions $345.8 million in compensatory damages and $418.8 million in punitive damages. During the trial, a Hytera attorney reportedly described the financial compensation sought by Motorola Solutions as a “bankrupting amount.” In February, the jury unanimously awarded Motorola Solution the full damages the company sought, and Judge Norgle affirmed the verdict. Motorola Solution also is seeking a post-trial ruling for a permanent injunction that would prohibit Hytera from selling a substantial amount of its DMR product portfolio anywhere in the world. Attorneys for Hytera — representing China-based Hytera Communications and subsidiaries such as Hytera America and Hytera Communications (West) — are seeking a new trial. In addition, Hytera has argued that any U.S. ruling should apply only to Hytera’s U.S. business, not the company’s activities in other countries throughout the world.
