SendTec files Chap. 11, receives offerSendTec Inc. recently filed a Chap. 11 petition voluntarily in the US Bankruptcy Court.
Concurrent with the filing, the court has received an offer led by management and a group of outside investment firms to purchase assets and continue operations in a new company.
SendTec CEO Paul Soltoff said in a statement that the Chap. 11 filing was necessary because of a series of corporate transactions involving SendTec's parent companies and going back to 2004. These left SendTec with large burden of debt apart from its core operations, which remain strong.
“These proceedings represent our best option for removing that burden while continuing to serve our clients and run our business,” said Soltoff, in the statement. “In the interim, it will be business as usual. We anticipate no reduction in staff or services.” The company is also prepared to pay vendors and business partners for post-filing goods sold and services rendered.
PHIDS Inc. is the name of the company formed for the purpose of acquiring SendTec. It has received a commitment letter for the financing of the acquisition from Cross Atlantic Capital Partners Inc., Internet Capital Group Inc and members of SendTec's senior management, including Soltoff, managing director Steven Morvay, CFO Donald Gould, EVP Irv Brechner and EVP Harry Greene.
All of SendTec's employees will continue and transition to the new company upon approval of the court's sale of assets.