PCWorld.com reported Tuesday that infamous Mac clone maker, Psystar, has filed for Chapter 11 bankruptcy protection. The pleadings indicate that the Florida-based company has less than $50,000 in assets and between $100,000 and $500,000 in liabilities to as many as 49 different creditors. The case is set for a hearing on June 5.

The story says Psystar blames the sour economy for its financial woes, but I can't help thinking its backers have finally decided they were over their heads in taking on Apple in antitrust litigation. The law firm representing Psystar in its suit against Apple is listed as its largest creditor.

Interestingly, though, beginning the bankruptcy proceedings puts the litigation with Apple "on hold" until the bankruptcy is resolved. Just a thought, but I'm guessing if the company does come out of its bankruptcy to continue to do business, it will need new representation in the Apple litigation. Would you want to do business with a company that had previously defaulted on its debt to you?