While logistics visibility platform provider Slync had hoped that new management and a $24 million cash infusion in February would be enough to save the FreightTech company after its former CEO was indicted on fraud charges, the company filed for bankruptcy Wednesday and plans to wind down operations and sell off its technology, Freight Waves reported. The timing of Slync’s bankruptcy filing comes nearly three weeks after former Slync CEO Chris Kirchner — who was indicted in May on charges he swindled $25 million from investors for personal use — filed suit on Sept. 26 against his former employer for legal fee advancement and indemnification in Delaware’s Court of Chancery. Kirchner’s suit seeks to have Slync pay his legal bills in his ongoing fraud case involving the U.S. Department of Justice and the Securities Exchange Commission. After Kirchner’s assets were frozen, a federal public defender was assigned to handle his case. According to court documents, after Kirchner’s legal team initially reached out to Slync’s outside counsel on Aug. 30, Slync stated that it “will agree to advance” and that his legal team should reach out to Slync’s CEO John Urban “regarding logistics.” However, less than three weeks later, Slync’s outside counsel told Kirchner’s legal team that Slync “purportedly lacks sufficient liquidity to fund advancement.”
