ICS Imaging Systems, Inc., filed Chapter 7 Bankruptcy proceedings in the U.S. Bankruptcy Court of the Northern District of Texas on Oct. 10, 2008, CEO Cliff Hess told DOTmed News.

He cited the current economic downturn as the reason. "It is really primarily because of where our economy has gone recently. A lot has to do with problems with access to cash from banks," Hess said. "A company like ICS works off lines of credit and it has become more difficult to get access to that kind of credit, particularly recently with what's going on on Wall Street. That's in large part what has precipitated the filing."

Hess confirmed that the company has outstanding debt, but when asked if any lawsuits were pending against ICS Imaging Systems, Inc., he had no comment.

Hess described the loss of business as a casualty of the ongoing decline in the imaging equipment industry. In a prepared statement, he indicated, "The combination of increased government regulation and healthcare reimbursement cuts have definitely made it more difficult for companies in the business of providing imaging equipment to stay profitable and even stay in business. The tightening up of the credit market and reluctance of banks to loan money has made it increasingly difficult for small businesses in general to continue flourishing and staying profitable in the highly competitive arena of used medical equipment sales. As the current financial crisis continues it is unfortunate but likely that more and more companies in the imaging industry will be adversely affected."

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