A New Berlin, Wisconsin-based industrial automation and robotics service provider has filed for Chapter 11 bankruptcy. Case records show that Blue Onyx Systems, LLC has more than 50 creditors.
The company is hoping to restructure its finances through the filing. Operations are expected to continue as normal under court guidance.
Blue Onyx Systems, LLC, Enters Bankruptcy
Blue Onyx Systems, LLC filed for Chapter 11 on April 22, 2026. Case records on PacerMonitor identify the company as a small-business debtor and state that it is proceeding under Subchapter V of Chapter 11.
Unlike regular Chapter 11 proceedings, a Subchapter V filing allows businesses to complete the process more quickly and cost-effectively.
Attorney Nicholas Kerkman of Kerkman & Dunn is the legal counsel for Blue Onyx Systems, LLC.
Operations Expected to Continue During Proceedings
The proceedings are currently being held in the U.S. Bankruptcy Court for the Eastern District of Wisconsin. While the process continues, the company’s daily operations are expected to face no disruptions.
According to PacerMonitor, the company filed a motion and a proposed order for the use of cash collateral. This indicates the company is seeking court approval to use funds for ongoing operations.
The company also filed motions to pay pre-petition wages and employee compensation. With this, it aims to retain employees to ensure operations run smoothly.
More Highlights from the Chapter 11 Petition
While Blue Onyx Systems, LLC has around 50 to 99 creditors, it submitted a list of the 20 largest unsecured creditors.
Case filings note that the company has a deadline of May 6, 2026, to file a list of equity security holders, a summary of assets and liabilities, and a statement of financial affairs.
Other important details of the Chapter 11 petition, also on PACER, are summarized here:
- Filing Date: April 22, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Eastern District of Wisconsin
- Type of Filing: Active, Voluntary Petition, Subchapter V
- Chapter: 11
- Case Number: 2:26-bk-22269
- Estimated Assets: Between $1,000,001 and $10 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: Between 50 and 99
- Reason for Filing: Restructure business under court supervision
About Blue Onyx Systems, LLC
Founded by Paul Szeflinski, the company designs and builds automation systems, such as case packing, palletizing, robotics, machine vision, and safety systems. Offerings cover the development of standard and custom automation equipment with a focus on robotics.
Blue Onyx Systems, LLC also offers maintenance, training, and support for industrial automation across consumer products, food and beverage, and logistics verticals.
According to its LinkedIn page, the company began operations in 1998. During that time, its emphasis was on a single machine project. It became a KUKA System Partner in 2008.
The company’s initial filings have offered a brief outline of steps to secure liquidity and address commitments to creditors and employees. Upcoming filings are expected to offer a clearer picture of its financial position in the coming months.
