Psystar goes broke

The defiant crusade of a small, unlicensed Mac clone maker against Apple may soon come to an end. According to The Mac Observer, Psystar Corporation has filed for Chapter 11 bankruptcy protection.

One could attribute the move to the bad economy, the fact that Psystar continues to sell Mac clones at bargain-basement prices, and the hefty legal fees required to battle Apple in court. However, The Mac Observer says the filing might also mean Psystar's backers "have pulled out, signaling they see Apple as the clear winner."

As we've reported before, Apple believes shadowy third parties are involved with the Floridian start-up—perhaps larger firms testing the legal waters to see if they, too, could one day offer white-box Macs. We'll soon find out if that's true. The report goes on to say the names of Psystar's equity creditors will come to light at a hearing on June 5.

That said, the bankruptcy filing should also throw a wrench in Apple's legal proceedings. The Mac Observer explains, "All legal actions involving the PC maker are automatically put on hold while the bankruptcy court begins its proceedings. The judge overseeing the case will, however, most likely lift that stay within a few months, allowing Apple's case to start moving forward again."

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