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Friday, July 20, 2001


WorldPoint to
auction off assets

It owes the state $810,000


By Tim Ruel
truel@starbulletin.com

A Honolulu high-tech company sued by the state over a government loan is auctioning off its assets.

WorldPoint Interactive Inc., which recently closed its headquarters at 1132 Bishop St., plans to auction its office furniture July 28, said Massimo Fuchs, president and chief executive of WorldPoint.

"That's just normal when you downsize," Fuchs said in e-mail.

The state loaned WorldPoint's predecessor firm $580,000 through the troubled Hawaii Capital Loan Program in 1995. WorldPoint soon stopped making payments on the loan, and now owes $810,000 with interest.

The state sued in June, seeking to foreclose on property owned by WorldPoint and on the homes of several of the company's founding board members and former employees.

Fuchs said WorldPoint is preparing to countersue the state for harming the company and interfering with its business.

"Given the disastrous track record of the Hawaii Capital Loan Program, and the way it is managed, I personally believe that the state is now simply trying to make a showpiece out of how tough it is with WorldPoint," Fuchs said.

Originally, WorldPoint had entered talks with the state to convert the loan to an equity stake. The talks dragged on, partly because the state had never made such a deal before, Fuchs said at the time. Meanwhile, WorldPoint secured up to $13 million in convertible debt and moved into new offices in the penthouse of 1132 Bishop St.

After the stock market for technology issues began to skydive, the state dropped its offer for the stock and wanted cash. WorldPoint was not profitable and began laying off employees by the dozens. It is now a virtual company. WorldPoint translates Web sites into different languages.

Myra Kaichi, a deputy with the Attorney General's Office, said the state will make a claim for any cash received from the sale of WorldPoint's assets. Among the company's former office equipment are 15 flat-panel video display screens bought for $15,000 apiece.



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