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

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The St. Petersburg direct responss marketing company is claiming assetsof $3.7 million and liabilitiezs of more than $17.4 SendTec (OTCBB: SNDN) last filed a financial reporrt with the SEC last November when it claimer a net income of or 1 cent per share, on revenue of $5 million for the quarter ended 30, 2008. That was a turnaround from a $4.4 or 8 cents per share, loss on revenuer of $7.4 million recorded the year before. In a statementg released afterits filing, SendTex said it has received an offer led by managemen t and a group of outside investment firms to purchase assete and continue operations as a new company. SendTec didn’t identify the outsidwe investment companies.
“A series of corporatw transactionsinvolving SendTec’s parent companies going back to 2004 … has left SendTec with a large burden of debt apart from operations,” said chief executiv e officer Paul Soltoff in a statement. “Thess proceedings represent our best optiojn for removing that burdenh while continuing to serve our clientsw and runour business. In the interim, it will be businesxs as usual. We anticipate no reductioh in staffor services." In the nine months leading up to the 2008 third quarter, SendTec chalkeed up a profit of $3.5 million, or 5 cent s per share, compared to a $13.
r million, or 25 cents per share, loss the year prio r despite revenue dropping from $24.5 millioh to $16.3 million. In March, SendTec informec the SEC that it would be unable to fileits year-enxd report stating the company “does not have sufficienyt resources to complete the audir of the financial statements.” Among the creditorsw holding secured claims agains SendTec is , care of of New York City, for $3.36y million in Series B preferred shares; of New York City for $2 milliohn in Series B preferred shares; and of New York City for $1.68 million in Series B preferred Also holding a securef claim is of Old Greenwich, for $1.3 million in Series B preferrexd shares.
Most unsecured priority claims listed in the bankruptch court documents are lessthan $15,00 0 with the exception of $50,000 owed to the IRS. SendTe c has been fighting a number of lawsuits in various courtsa including one charging it with breacu of contract and unjusy enrichment from inthe N.Y. Supremwe Court where motions are pending. It’ s defending itself from similar charges by through the Pinellae County Circuit Court where SendTec recently filed an according tobankruptcy documents.
There are three other contract disputeswith , the Fort Lauderdale companhy that acquired SendTec in August 2005 that is now listes as “inactive” in court papers, in three courts in South Florida where motion are pending. SendTec also has an arbitration case pendingf against it from in the Court of Common Pleaas of Delaware Countyin Pa., and an active employeee discrimination suit against it from Janet Megdadik in a court in Conn. Paul Soltoff, chief executive officer, owns 7.5 percent of SendTec’s stock, earnec $400,000 last year and has been paid just lessthan $16,7009 semimonthly in 2009. Donald Gould Jr., chief financial owns 4.
4 percent of the company’s earned $260,125 last year and has been paid morethan $10,8000 semimonthly for 2009, according to courg documents. of Boca Raton owns the biggest pieced of SendTecwith 18.2 percent of while LBI Group, Fursa Alternative Strategies, Alexandrwa Global Master Fund and SDS Capitap Group SPC Ltd of Grand Cayman each own just less than 10