SendTec files for Chapter 11 bankruptcy protection - Tampa Bay Business Journal:

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The St. Petersburg direct respons e marketing company is claiming assetswof $3.7 million and liabilities of more than $17.e4 million. SendTec (OTCBB: SNDN) last filedf a financial report with the SEC last November when it claimerd a net incomeof $623,000, or 1 cent per on revenue of $5 million for the quarter ended 30, 2008. That was a turnaround from a $4.4 or 8 cents per loss on revenueof $7.4 millionm recorded the year before. In a statement released aftedrits filing, SendTec said it has receivedr an offer led by managementf and a group of outside investment firms to purchase assetsa and continue operations as a new company.
SendTevc didn’t identify the outside investment “A series of corporate transactionsinvolving SendTec’s parent companiews going back to 2004 … has left SendTe c with a large burdemn of debt apart from operations,” said chief executivwe officer Paul Soltoff in a statement. “These proceedingsw represent our best option for removingy that burden while continuing to servee our clients and run our Inthe interim, it will be business as We anticipate no reduction in staff or services." In the nine monthws leading up to the 2008 third SendTec chalked up a profirt of $3.5 million, or 5 cents per share, comparedd to a $13.
5 million, or 25 centes per share, loss the year priod despite revenue dropping from $24.5t million to $16.3 million. In SendTec informed the SEC that it would be unablr to fileits year-end report statinb the company “does not have sufficient resourced to complete the audit of the financial Among the creditors holding secured claims againstg SendTec is , care of of New York for $3.36 million in Series B preferree shares; of New York City for $2 milliohn in Series B preferred shares; and of New York City for $1.687 million in Series B preferred shares. Also holding a secured claimk is ofOld Greenwich, for $1.
3 million in Series B preferred Most unsecured priority claimsw listed in the bankruptcy court documents are less than $15,00p0 with the exception of $50,000 owed to the IRS. SendTefc has been fighting a numberf of lawsuits in various courtes including one charging it with breach of contractr and unjust enrichment from inthe N.Y. Supremre Court where motions are pending. It’s defendin g itself from similar charges by through the Pinellas Countuy Circuit Court where SendTec recently filed an according tobankruptcy documents.
There are thre other contract disputeswith , the Fort Lauderdale company that acquired SendTec in Augusgt 2005 that is now listed as in court papers, in three courts in South Floridaq where motions are pending. SendTe c also has an arbitration case pending against it from in the Couryt of Common Pleas of Delawars Countyin Media, Pa., and an activr employee discrimination suit against it from Janert Megdadi in a court in Bridgeport, Conn. Paul chief executive officer, owns 7.5 percent of SendTec’s earned $400,000 last year and has been paid just lessthan $16,70p semimonthly in 2009. Donald Gould Jr., chieg financial officer, owns 4.
4 percent of the company’s earned $260,125 last year and has been paid morethan $10,800 semimonthly for 2009, according to court documents. of Boca Raton owns the biggesrt piece of SendTecwith 18.2 percentr of shares, while LBI Group, Fursa Alternative Alexandra Global Master Fund and SDS Capitalp Group SPC Ltd of Grand Cayman each own just less than 10