Apple has seen off a company which was making PCs that ran on its OSX operating system. The outfit basically did a Microsoft maneuver and stuck the Psystar in court until it could not afford to pay its legal bills and went bankrupt.

Psystar said that it doesn't have the money to fend off Apple's legal dogs and it has applied for Chapter 11 protection.

The outfit is more than $250,000 in debt, due to poor sales. Most of the debt is owed to shipping companies, PC parts makers, and more importantly, its law firm Carr & Ferrell, which is representing the company in a suit brought by Apple.

Apple sued Psystar last year for copyright and trademark infringement for selling Mac OS X on non-Apple hardware.

Still, Psystar could survive this as by filing Chapter 11, companies can pay off their debts and re-emerge as a business in the future. Apple will only get a few cents on the dollar of what it claims Psystar owes it and the outfit can probably start again with the same business plan.