Elkhart-based payroll processing company declares bankruptcy

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ELKHART, Ind. (WNDU) - An Elkhart-based payroll processing company, struggling with a wire fraud lawsuit, has declared bankruptcy.

Our reporting partners at The Goshen News report, Interlogic Outsourcing Inc.’s interim president Daniel Wikel, filed for Chapter 11 bankruptcy restructuring on Sunday.

The bankruptcy came after KeyBank sued IOI and owner Nejeeb Khan on claims of fraud and breach of contract. IOI used KeyBank for a significant portion of payroll processing transactions, according to court documents.

IOI reached out to 28 potential buyers, and 12 of them expressed interested, according to documents obtained by The Goshen News.

IOI and its affiliates have more than 170 employees.