Psystar Files for Chapter 11 Bankruptcy

Psystar, the Doral-based shady maker of Apple clones, has filed for Chapter 11, according to the Mac Observer. The small company has been selling Mac clones -- non-Apple computers that run Apple's OSX operating system -- and has been in a costly legal fight with the computer giant since last year.

"For those keen on the subtle distinctions of having no money, Chapter 11 is the one where you still have to pay off some of your debt, whereas Chapter 13 is the really, really bankrupt, clean slate kind of broke," explains GigaOM.

As a side effect of the filing, the company's court battle with Steve Jobs and company will be delayed during the bankruptcy proceedings, which conveniently gives Psystar more time to get its case together.