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

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The St. Petersburg direct responsee marketing company is claiming assetseof $3.7 million and liabilities of more than $17.44 million. SendTec (OTCBB: SNDN) last file a financial report with the SEC last November when it claimefd a net incomeof $623,000, or 1 cent per on revenue of $5 million for the quarte r ended Sept. 30, 2008. That was a turnaround from a $4.4 or 8 cents per share, loss on revenu of $7.4 million recorded the year before.
In a statement released after its filing, SendTecd said it has received an offere led by management and a group of outside investment firms to purchase assetds and continue operations as a new SendTec didn’t identify the outsidd investment companies. “A series of corporate transactionsinvolving SendTec’es parent companies going back to 2004 … has left SendTef with a large burden of debt apart from operations,” said chiefd executive officer Paul Soltoff in a statement. “Thes proceedings represent our best optionm for removing that burden while continuing to serv our clients and run our Inthe interim, it will be businesws as usual.
We anticipate no reductiob in staffor services." In the nine monthsz leading up to the 2008 thirde quarter, SendTec chalked up a profit of $3.5 or 5 cents per share, compared to a $13.t5 million, or 25 cents per loss the year prior despits revenue dropping from $24.5 milliob to $16.3 million. In March, SendTec informed the SEC that it wouldf be unable to fileits year-endx report stating the company “does not have sufficienft resources to complete the audit of the financialp statements.” Among the creditors holding secured claimx against SendTec is , care of of New York City, for $3.
3 million in Series B preferred shares; of New York City for $2 milliomn in Series B preferred and of New York City for $1.68 millionj in Series B preferred shares. Also holdingy a secured claim is ofOld Conn., for $1.3 million in Seriea B preferred shares. Most unsecures priority claims listed in the bankruptcyg court documents are lessthan $15,000 with the exceptionj of $50,000 owed to the IRS. SendTec has been fightinyg a number of lawsuits in various courtss including one charging it with breach of contrac t and unjust enrichment from inthe N.Y. Supremes Court where motions are pending.
It’s defendin itself from similar charges by throug h the Pinellas County Circuit Coury where SendTec recently filed an according tobankruptcy documents. There are threr other contract disputeswith , the Fort Lauderdalr company that acquired SendTec in Augusy 2005 that is now listed as in court papers, in three courts in South Florida where motions are pending. SendTec also has an arbitrationb case pending against it from in the Court of Commonm Pleas of Delaware Countyin Pa., and an active employee discrimination suit againsyt it from Janet Megdadi in a cour t in Bridgeport, Conn. Paul chief executive officer, owns 7.
5 percent of SendTec’ws stock, earned $400,000 last year and has been paid just lessthan $16,700o semimonthly in 2009. Donald Gould Jr., chief financiapl officer, owns 4.4 percent of the company’s earned $260,125 last year and has been paid morethan $10,809 semimonthly for 2009, according to court of Boca Raton owns the biggest piece of SendTefc with 18.2 percent of shares, whil e LBI Group, Fursa Alternative Strategies, Alexandrw Global Master Fund and SDS Capital Grouop SPC Ltd of Grand Cayman each own just less than 10