DnC Multimedia Corp (fka DCNMQ)

[harr449]

Monday, December 22, 2008 DNC Multimedia files for Chapter 11

South Florida Business Journal - by Paul Brinkmann

DNC Multimedia Corp., formerly Planetlink Communications, has filed for Chapter 11 bankruptcy.

The designer, manufacturer and marketer of digital media technology products (Pink Sheets: DCNM) has headquarters listed as Suwanee, Ga., but the bankruptcy filing said the principal remaining assets are located at James Dodrill’s law offices in Boca Raton.

The company has $1.15 million in assets and $1.16 million in debt, and more than 3 million outstanding shares of stock held by 116 stockholders, according to the bankruptcy petition, which was signed by M. Dewey Bain, the company’s secretary, and filed by attorney Bradley Shraiberg, of Kluger Peretz Kaplan & Berlin’s Boca Raton office.

Shraiberg said a third party, Minnesota-based distributor HL Seafood, is interested in acquiring DNC in a reverse merger through bankruptcy reorganization. He said DNC received a nonbinding letter of intent from HL Seafood, proposing it acquire a controlling interest in the company. But, DNC first must extinguish all liabilities pursuant to bankruptcy reorganization.

The only Florida creditor listed on the petition was Florida Atlantic Stock Transfer of Fort Lauderdale, with a claim of $1,242. The largest unsecured creditor on the petition was Amy Trombly of Newton Center, Mass., with a claim of $40,000.

Creditors hold $630,000 in secured claims, the petition states.

According to an SEC filing in May, Trafalgar Capital Specialized Investment Fund sent a notice of acceleration of all principal, interest and redemption premiums due Trafalgar pursuant to a secured convertible debenture issued by DNC Multimedia on Nov. 30, 2007, in the principal amount of $500,000.

The filing said the company closed on a financing transaction with a group of private investors for $300,000 on May 12. The filing said all funds provided in the financing are held in escrow to be released at Trafalgar's discretion.

DNC shares were down one-tenth of a cent to 2 cents in afternoon trading. The 52-week high and low were not available.

http://southflorida.bizjournals.com/southflorida/stories/2008/12/22/daily9.html