Spongetech Delivery Systems Inc (fka SPNGQ)

[puppydotcom]

they do .. its already on record .. and the judge has denied the extension .. the judge has listed the required filings due - and since SPNG has no current filings - they will have to do the best they can - under the trustees flag

here is where the SEC takes a role in the chapter 11

Managing Periodic Reporting Obligations

Preparing periodic reports — particularly audited financial statements — can involve substantial accounting and legal expense. Although some Chapter 11 debtors can maintain compliance with their Exchange Act reporting obligations throughout their bankruptcy cases, such compliance can very difficult for others to maintain.

At the outset of a case, turnaround managers should assess the status of compliance with periodic reporting obligations and determine, in light of the client’s particular circumstances, objectives, and prospects, whether the debtor should attempt to return to or continue to maintain such compliance. This determination depends on a variety of factors, including whether the benefits of periodic reporting outweigh the costs. The determination may need to be made with due consideration of the debtor’s fiduciary duties to all relevant constituencies, including both creditors and holders of equity securities.

Continued periodic reporting offers obvious benefits, including the following:

* It allows a debtor to provide both creditors and shareholders with useful and reliable information in a customary format
* Properly audited financial statements, as required under SEC rules, may assist a debtor in negotiating the reorganization plan and preparing the disclosure statement
* It may boost the confidence of customers and suppliers and retain and incentivize employees
* It supports a liquid market for the company’s securities
* It may preserve a debtor’s eligibility to take advantage of certain benefits or exemptions available to issuers who are “current” in their periodic reports
* It facilitates a company’s emergence from bankruptcy as a public company

On the other hand, continued periodic reporting involves significant negatives and other considerations. For example:

* It is not required by the Bankruptcy Code, which has its own disclosure and reporting regime
* There may be little or no value in or trading of the debtor’s publicly traded securities and therefore no compelling reason to preserve liquidity for the security holders
* Conservation of cash is usually a top priority for debtors, and the cost of periodic reporting can be significant
* Completing audited financial statements can be time-consuming and distracting for the debtor’s management, which has many other priorities in a Chapter 11
* The debtor may not expect to emerge from Chapter 11 protection as a reporting company
* From the perspective of its creditors, audited financial information for prior periods may not even result in meaningful current information about the company
* If the debtor is out of compliance with its periodic reporting obligations, it may be extremely difficult to restore the company to full compliance. In cases of fraud, mismanagement, or severe failure of internal controls and reporting systems, management may not even have reliable information that can be audited

and

Federal law does not exempt a debtor from Exchange Act disclosure and reporting requirements. Furthermore, the automatic stay that becomes effective upon filing of the Chapter 11 petition does not operate against governmental units, including the SEC, in exercising their regulatory powers. Obligations to file current and periodic reports with the SEC and to avoid or correct selective disclosure continue throughout the pendency of a bankruptcy case unless and until those requirements are otherwise extinguished.

http://www.turnaround.org/Publications/Articles.aspx?objectId=10450