A Chapter 11 or corporate rehabilitation filing allows a company to continue operations while undergoing a rehabilitation plan, said Epixtar consultant Harry Fozzard. What Epixtar filed for was not a bankruptcy claim but more of a reorganization plan, wherein a company files a plan for corporate rehabilitation which will then be subject to the court's approval, said Fozzard. 'During this time creditors agree to take a break, and once reorganization is done they can resume investment,' he added.

This is a necessary action which will serve as a form of 'payback' to compensate obligations to and preserve Epixtar's value for its creditors, said the Epixtar consultant. Fozzard then stressed that the company is still operating and will maintain their programs for their 15 clients in the RP call center operations. 'We somehow overextended our growth plans so we just need to take a step back,' he said.

In July of this year, Epixtar announced that it was undergoing a streamlining program, which led to almost 100 job cuts out of the company's 1,700 employees in Manila. Fozzard, however, clarified that they do not expect to cut employment this time, although there may be the relocation of some personnel from one department to another. 'This may or may not affect executive positions; we cannot really tell right now,' said Fozzard, adding that what the company is focusing on right now is streamlining the operations.

Epixtar is now still analyzing every facet of the organization, after which the company will have to wait until their reorganization plans are approved by the court before they can implement and make final announcements about certain changes. On the other hand, the changes that started before this filing which resulted from the streamlining procedures announced in July, are already beginning to take hold, said Fozzard. 'Our quality of work has been improved and operations are actually running smoothly right now.'

Epixtar Corp. has brought in a new management team about six to eight weeks ago, said Fozzard. 'We are happy to note that they have been very productive for the past six weeks.' Comprising the new management team are executives that are not necessarily new to Epixtar, as some had been with the company for some time but were just promoted. The new Epixtar CEO, who also is a shareholder in the company, is Martin Miller, joined by his team of newly-assigned officials: a chief operations officer (COO), a legal counsel that runs the human resource department and oversees the non-operational aspect of the business, and a chief financial officer (CFO).