Listworks Owes $9.2 Million to Wells Fargo, Other CreditorsThe secured and unsecured creditors of defunct list firm The Listworks Corp. are owed more than $9.2 million collectively, according to court documents filed just before a meeting of creditors that was scheduled to be held yesterday.
The Listworks Corp., Hawthorne, NY, closed Feb. 1 and filed a petition for Chapter 7 bankruptcy relief Feb. 18 with the U.S. Bankruptcy Court Southern District of New York in White Plains. The company was founded in 1982, and it reportedly was bought in 2003 by a group of investors and three employees, including Walter Monzi, who was president/CEO at the time of the closure, for more than $5 million.
A total of $4,787,877.47 is owed to Listworks' secured creditors, according to the filing. The largest amount is $3,329,809.81 owed to Wells Fargo, which filed a motion for relief from automatic stay with the court March 22. Though the Chapter 7 filing guarantees Listworks an automatic stay from unsecured creditors -- meaning that no lawsuits, foreclosure, garnishments or other collection activities against it are permitted -- secured creditors may file for relief from the automatic stay as Wells Fargo has done.
Next on the list of secured creditors is Listwork Holdings Inc., Raleigh, NC, owed more than $1.2 million, according to the documents. Markus Isenrich is listed with Listwork Holdings. The last two secured creditors are Robert and Gina Givone, who each are owed $113,602.45. Robert Givone was a founder of Listworks.
According to the documents, there also is $104,021.35 owed in what the filing calls unsecured priority claims. Priority claims include employee wages, commissions and contributions to benefit plans. The list consists of 35 individuals who likely were former Listworks employees.
Documents show the total owed to the more than 400 creditors with unsecured nonpriority claims to be $4,371,446.73. The top 20 creditors, which are owed more than $2.2 million, appear in the court documents as follows:
· Muscular Dystrophy Association, $179,717.26
· List Services Corp., $164,159.57
· Marketing Response System, $158,457.10
· Christian Saint Michael, $158,003.59
· Millard Group Inc., $133,533.99
· Information Products Inc., $119,024.05
· Direct Response Advertis, $118,048.22
· Christian Appalachian Project, $113,864.99
· ClientLogic Specialists Marketing Services, $111,683.66
· American Diabetes Association, $108,659.37
· Club for Success, $106,761.74
· Direct Media Inc., $103,442.92
· NCRI List Management, $103,268.07
· Mokrynski & Associates Inc., $102,972.17
· Global Reporting Network, $102,741.52
· Macromark Inc., $98,767.45
· A Moving Experience, $97,930.21
· Walter Karl, $71,417.15
· Lake Group Media Inc., $68,290.60
· American List Counsel, $62,952.61
Listworks trustee Eric C. Kurtzman was scheduled to preside over yesterday's creditor meeting.
On March 17, Judge Adlai S. Hardin granted approval for Listworks' trustee to retain auctioneer Henry A. Leonard & Co. Inc., Englewood, NJ, to sell the company's assets at a public auction. According to the application, the assets include office furniture, equipment and a 2001 Ford Taurus, though their worth was not listed.
Kristen Bremner covers list news, insert media, privacy and fundraising for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters