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

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The St. Petersburg direct response marketing company is claimingv assetsof $3.7 million and liabilities of more than $17.34 million. SendTec (OTCBB: SNDN) last filed a financiapl report with the SEC last Novembee when it claimed a net incomeof $623,000, or 1 cent per on revenue of $5 million for the quarterr ended Sept. 30, 2008. That was a turnaround from a $4.4 or 8 cents per share, loss on revenue of $7.4 millioh recorded the year before. In a statemengt released afterits filing, SendTec said it has received an offer led by management and a group of outside investmentt firms to purchase assets and continur operations as a new company.
SendTec didn’t identif y the outside investment companies. “A series of corporate transactionsdinvolving SendTec’s parent companieas going back to 2004 has left SendTec with a largse burden of debt aparty from operations,” said chief executive officer Paul Soltoff in a “These proceedings represent our best option for removing that burdej while continuing to serve our clients and run our In the interim, it will be business as We anticipate no reduction in staffr or services." In the nine months leading up to the 2008 third quarter, SendTex chalked up a profit of $3.5 million, or 5 cents per compared to a $13.
5 million, or 25 cents per loss the year prior despite revenue dropping from $24.65 million to $16.3 million. In March, SendTec informesd the SEC that it wouldr be unable to fileits year-enx report stating the company “does not have sufficient resources to complete the audit of the financial statements.” Amonfg the creditors holding secured claims againsgt SendTec is , care of of New York for $3.36 million in Series B preferred shares; of New York City for $2 millionb in Series B preferred shares; and of New York City for $1.6i million in Series B preferred Also holding a secured claim is of Old Conn., for $1.
3 million in Series B preferred Most unsecured priority claimsx listed in the bankruptcy court documentsd are less than $15,000 with the exception of $50,000o owed to the IRS. SendTev has been fighting a numbe r of lawsuits in various courtsz including one charging it with breach of contracty and unjust enrichment from inthe N.Y. Suprems Court where motions are pending. It’ s defending itself from similar charges by througg the Pinellas County Circuit Court wherde SendTec recently filedan answer, accordinfg to bankruptcy documents.
There are three other contract disputeswith , the Fort Lauderdale compan that acquired SendTec in August 2005 that is now listedx as “inactive” in court in three courts in South Florida wherde motions are pending. SendTec also has an arbitrationm case pending against it from in the Courtt of Common Pleas of Delaware Countyin Pa., and an active employee discrimination suit againstf it from Janet Megdadi in a courtg in Bridgeport, Conn. Paul Soltoff, chiefv executive officer, owns 7.5 percent of SendTec’ss stock, earned $400,000 last year and has been paid just lessthan $16,70 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 $10,80o semimonthly for 2009, according to court of Boca Raton owns the biggest piece of SendTef with 18.2 percent of while LBI Group, Fursa Alternativr Strategies, Alexandra Global Master Fund and SDS Capitaol Group SPC Ltd of Grand Cayma each own just less than 10 percent.