Psystar Files for Bankruptcy

The Mac Observer reports that Psystar, the manufacturer of unauthorized Mac clones currently embroiled in a legal battle with Apple, has filed for Chapter 11 bankruptcy. The move is likely to delay the proceedings in Apple's case, which is currently still in the discovery phase, although it also signals that Psystar may be unable to finance its continuing defense against Apple.

Unauthorized Mac clone maker Psystar has filed for Chapter 11 bankruptcy protection in Florida, temporarily slowing down Apple's legal case against it. The filing may be an indication that the company's financial backers have pulled out, signaling they see Apple as the clear winner in court.

The bankruptcy documents were filed with the Federal Courts in Florida on Thursday, and Apple's legal team was most likely made aware of the situation over the Memorial Day weekend.

Significantly, the bankruptcy hearing scheduled for June 5th should reveal the identities of any investors that have backed Psystar in its defiance of Apple. Apple suggested in court documents last December that there may be such unnamed individuals or corporations, given Psystar's apparent resources to engage in the production of Mac clone systems and willingness to engage in a lengthy and costly legal battle with Apple over the products.