Spongetech Delivery Systems Inc (fka SPNGQ)

[scion]

d. Office Space.

Prior to the filing of the bankruptcy case, the Debtor’s New York landlord filed an action terminate the lease of the New York office/showroom and evict Spongetech. The landlord asserts it is owed approximately $150,000 in unpaid rent. The landlord has further asserted that it properly terminated the lease pre-bankruptcy and has requested that the Trustee vacate the premises as soon as possible. If the lease was properly terminated prior to the filing of the Bankruptcy Petition, it will be necessary to vacate this space or reach alternative arrangements with the landlord. However, it is not clear that there are sufficient funds to maintain the New York office. The lack of an office/showroom and the lack of an ability to fund an office/showroom will make any sales effort more difficult. The Trustee is assessing Debtor’s space needs.

Doc 69 PDF file
http://viewer.zoho.com/docs/hchi4