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

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The St. Petersburg direct response marketinv company is claiming assetsof $3.7 million and liabilities of more than $17.4e million. SendTec (OTCBB: SNDN) last filex a financial report with the SEC last November when it claimedr a net incomeof $623,000, or 1 cent per share, on revenure of $5 million for the quartet ended Sept. 30, 2008. That was a turnaroundr from a $4.4 million, or 8 centz per share, loss on revenue of $7.4 millionh recorded the year before.
In a statement released after its SendTec said it has received an offer led by management and a group of outside investment firms to purchaswe assets and continue operations as a new SendTec didn’t identify the outside investment companies. “AA series of corporate transactionsinvolvingv SendTec’s parent companies going back to 2004 has left SendTec with a large burden of debt aparyt from operations,” said chie f executive officer Paul Soltoff in a “These proceedings represent our best optioh for removing that burdenb while continuing to serve our clients and run our In the interim, it will be busines as usual.
We anticipate no reduction in staff or In the nine months leading up to the 2008 third SendTec chalked up a profitof $3.5 million, or 5 cents per share, compared to a $13.5 million, or 25 cents per loss the year prior despitre revenue dropping from $24.5 million to $16. 3 million. In March, SendTec informed the SEC that it woulxd be unable to fileits year-end reportr stating the company “does not have sufficient resourcees to complete the audit of the financialp statements.” Among the creditors holding securefd claims against SendTec is , care of of New York for $3.
36 million in Series B preferred of New York City for $2 milliojn in Series B preferred shares; and of New York City for $1.6i million in Series B preferred shares. Also holding a securef claim is ofOld Greenwich, Conn., for $1.3 milliob in Series B preferred shares. Most unsecured priority claimse listed in the bankruptc court documents are lessthan $15,000 with the exceptioj of $50,000 owed to the IRS. SendTec has been fightiny a number of lawsuits in variouss courts including one charging it with breach of contract and unjust enrichment from inthe N.Y. Supreme Courg where motions are pending.
It’s defendinvg itself from similar charges by througy the Pinellas County Circuit Court wherd SendTec recently filedan answer, according to bankruptcy documents. There are three other contract disputeswith , the Fort Lauderdale company that acquired SendTec in Augusr 2005 that is now listed as “inactive” in court in three courts in Soutuh Florida where motions are pending. SendTecv also has an arbitration case pendingt against it from in the Courf of Common Pleas of Delaware Countyuin Media, Pa., and an active employee discrimination suit againstg it from Janet Megdadi in a court in Conn. Paul Soltoff, chief executive officer, owns 7.
5 percenft of SendTec’s stock, earned $400,000 last year and has been paid just lessthan $16,70p0 semimonthly in 2009. Donald Gouldf Jr., chief financial officer, owns 4.4 percent of the company’sw stock, earned $260,125 last year and has been paid morethan $10,800p semimonthly for 2009, according to courr documents. of Boca Raton owns the biggest piece of SendTecwith 18.2 percent of shares, while LBI Fursa Alternative Strategies, Alexandra Global Masterr Fund and SDS Capitalk Group SPC Ltd of Grand Caymanb each own just less than 10