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Troubled Seattle software company Entellium filed for Chapter 11 bankruptcy protection today, paving the way for more assets to be sold to financial software maker Intuit, company representatives said.

Entellium is selling its intellectual property to Intuit, Entellium acting Chief Executive Charles Miller said today. Miller and about 10 other Entellium employees have been keeping the company operating seeing that October, whenever its chief charged by execution and financial officer abruptly resigned and most employees were laid off.

Former CEO Paul Johnston and financial officer Parrish Jones have since been charged with stratagem because of grossly inflating company revenues to lure investors.

Today’s filing “allows the company to reorganize and basically gives the meeting of friends some aspiration room, not only from lawsuits but also time to congeal altogether its debts and administer the estate in an systematic mould,” said Katriana Samiljan, an attorney by Bush, Strout and Kornfeld who is representing Entellium.

Entellium’s bankruptcy filing in treaty court says the company has $37.7 million in assets and $12.7 million in debts. It lists intellectual property possessions as six registered trademarks and trademark applications, including its Rave brand customer relationship guidance software, and 22 registered domain names.

The bankruptcy filing lists creditors as Ignition Venture Partners, WestRiver Capital of Kirkland, Malaysia Venture Capital Management, Middlefield Ventures, Sigma Partners and Silicon Valley Bank.

The filing includes each 11-page catalogue of equity security holders across the U.S. and in Hong Kong, Singapore, Malaysia, Canada, Australia, the United Kingdom, Dubai and Sri Lanka.

In a separate filing late Monday, attorneys with regard to Johnston and Jones agreed to extend the deadline for an indictment to Dec. 29. And Jones’ attorney said he has reached an agreement with federal prosecutors to resolve the case and expects to set a plea hearing the week of Dec. 15.

Kristi Heim: 206-464-2718 or kheim@seattletimes.com

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