Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

"so Dicon can't pay their debts with the income they had. What does that tell you? Their operating costs exceed their revenues as I stated all along.

This was not a viable business to save and was a losing venture."

The petitioners don't entirely agree.

"Based on the financial information available to Petitioning Creditors, in 2008, the only full year of independent operation, Dicon sustained a net loss of approximately $857,000 on sales of $6.9 million. It appears that Dicon’s sales and profitability subsequently improved, such that Dicon would be currently cash flow positive but for the actions of Spongetech which have seriously impaired Dicon's ability to maintain its customer relationships and operate profitably."


Their #1 priority appears to be to secure a trustee to try and rescue the operation. And, perhaps even more importantly, to try and make something of this:
31. The Petitioning Creditors believe that Dicon has substantial claims against Spongetech, Moskowitz, Metter and potentially others. However, as long as Dicon lacks sufficient independent management, it does not have the ability to pursue those claims.