Winning a bidding war against database giant infoUSA, Stephen T. Dunn, president/CEO of Mal Dunn, has secured the assets of the company for more than $4 million. Dunn, under the company name Dunn Data Co., has agreed to a $3.6 million mortgage, a $250,000 cash payment, the forgiving of a $600,000 loan to Mal Dunn and various other considerations.
The decision was made in a Putnam County, NY court case yesterday.
“It’s been a real cliff-hanger,” Dunn told DM News. “Everyone’s really pleased that we’re able to get out of bankruptcy and move on from here.”
Dunn is the son of company founder Mal Dunn, who opened the business in 1973. He filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on August 24. Chapter 11 allows for a reorganization of a company.
According to court documents, Mal Dunn’s unsecured debt included $7,895,999 in accounts payable to trade clients; $386,307 in accounts payable to production clients; and $168,965 in commissions payable.
In his affidavit to the court, Dunn said that the deterioration of his business can be attributed to multiple causes: the advent of the Internet; changes in postal rate and ailing size structures; and rapid consolidation, which left his competitors much larger and better capitalized.
The original offer submitted on the part of Mal Dunn included a cash consideration of $200,000, assumption of payables in the amount of $840,000.