SendTec, a St. Petersburg, Fla. marketing company, has filed Chapter 11 in the U.S. Bankruptcy Court. The court received an offer led by management and a group of outside investment firms to purchase assets and continue operations as a new company. In a prepared statement, Paul Soltoff, SendTec CEO, said the company's core business "remains valuable" to clients, and it will continue operating as usual during the Chapter 11 process.
Debt that resulted from a series of corporate transactions involving SendTec's parent companies going back to 2004 prompted the decision. Soltoff said the debt left the company with a large burden, and filing Chapter 11 seemed like the best option. Several creditors hold secured claims against SendTec. The company also has been fighting several lawsuits. -- Laurie Sullivan