Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Renee]

To my knowledge of the U.S. Bankruptcy Laws no public company can file a Chapter 11 Protection for a Reorganization Bankruptcy if there are any Securities convictions from SEC charges or crimninal convictions by the DOJ . A public company cannot be protected from their own fraud or other illegal activity .

They can file for Chapter 7 Liquidation where the Trustee would take possession of all the company's assets , books , and the share equity .

The fact that Spongetech has not paid their bills as evident from the creditor lawsuits Spongetech could be forced into a Chapter 7 Liquidation regardless to the status of the SEC Formal Investigation and subsequent Wells Notice . Should that occur then the Trustee would have full possession of Spongetech's books ( as well as ALL assets ) which then may expedite the SEC actions against the company and Directors of the company .

Metter and Moskowitz would not file any type of BK for the same reasons they will not file any Financials because either action would expose ALL information that they likely do not want exposed .

Again , to my knowledge .

Renee