Rushville-based Omnicity Inc., which had big plans to snap up rural broadband systems throughout the Midwest, has landed in bankruptcy court.

The company, which filed for Chapter 11 protection on Thursday, has been in a financial slide for months. IBJ reported over the summer that Omnicity’s auditor reported it “had substantial doubt about the company’s ability to continue as a going concern.”

At that point, Omnicity was facing at least five lawsuits, most alleging the firm had failed to fully pay owners of firms it had acquired.

The bankruptcy filing says Omnicity has assets of less than $50,000 and liabilities of $500,000 to $1 million.

Omnicity has been held out as a promising growth company.

Last year, the Indiana Economic Development Corp. offered up to $25,000 in training grants toward an expansion in Rushville.

The IEDC also provided a $110,000 grant to Rushville officials to help the company with its expansion. The company had 49 employees as of late last year..

The company lost $878,337 on $2.5 million in sales in the six months that ended Jan. 31, 2011, the latest period available.

Much of Omnicity’s business involves delivering Internet service via wireless signals. Omnicity said it had 10,600 active subscribers on Jan. 31, built mainly through acquisitions.