Replies to post #326103 on Spongetech Delivery Systems Inc (fka SPNGQ)

[puppydotcom]

Not only is there cause—including compelling evidence of fraud, dishonesty, and gross mismanagement of the affairs of Spongetech
Delivery Systems, Inc. (the "Debtor") by current management, but appointment of a Chapter 11 trustee is in the interests of creditors, equity security holders, and other interests of this estate
The cause here includes, among others

(1) allegations of securities fraud and obstruction of justice, resulting in the recent arrest
of current management and a civil enforcement action by the Securities and Exchange
Commission (the “SEC”);

(2) allegations raised at a hearing before the Bankruptcy Court in the Southern District of
Georgia regarding a very recent diversion of at least $700,000 in cash for the personal
benefit of the Debtor’s current management from the Debtor’s wholly-owned
subsidiary, Dicon (which is itself in Chapter 11 in Georgia with an appointed trustee); and

(3) the apparent forgery of an attorney’s signature on the Debtor’s bankruptcy petition by
someone affiliated with current management

[OldTymer]

Well, if the trustee is recommending to the court that either a trustee be appointed to the chapter 11, or simply convert this to a chapter 7, then I would have to assume that the SEC and the trustee already know that SPNG has almost no assets, nor are they selling anywhere near enough products to stay in business, otherwise they would not have recommended chapter 7 as an alternative. If SPNG had the sales to stay in business, chapter 7 never would have been mentioned. You don't liquidate a company if they have the sales figures to continue. IMHO.

[pantherj]

I wonder how many of the "uber longs" who continue to prattle on in support of the low life criminals, M&M, will read and understand what is being said in this document? Since I doubt they will read the document with an open mind, if at all, here is the bottom line .... taken from the document itself.

"... it is in the interests of creditors and seemingly defrauded equityholders for an independent fiduciary to be appointed as soon as possible."

Anyone who supports M&M at this point, clearly has an agenda that is NOT in the share holders best interest. Either that, or they have been bitten directly on the brain stem by a rabid dog ....IMO.