Replies to post #327426 on Spongetech Delivery Systems Inc (fka SPNGQ)

[scion]

REPORT

1. Cash Situation.

Spongetech currently has no available cash to fund its business operations. One subsidiary of Spongetech has less than $200 (Two Hundred Dollars) in a checking account. The Trustee has been in communication with the Chapter 11 Bankruptcy Trustee for Dicon Technologies LLC. (“Dicon”), who advises that Dicon is also in a liquidity crisis. Dicon is a wholly owned subsidiary of Spongetech for which an order for relief under Chapter 11 of the Bankruptcy Code was entered prior to the date on which Spongetech filed its Chapter 11 Petition. Obviously, there are substantial questions about the sources and uses of cash prior to the Bankruptcy; however, there is simply no readily available cash to fund business operations at this time.

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

[TEX]

...and there you have it. Conspiracy? *poof*

[alien42]

the fat lady has sung and SPNG is officially toast.

kiss this SCAM goodbye folks.

[overachiever]

Just as I thought. SPNG has no money. Few collectible receivables. Has lost its licensing agreements for failure to pay royalties, is getting evicted for failure to pay rent, has not paid commissions owed to its salesmen and has produced few financial records to the trustee. Even the factor has quit. lol.

The fraud here was immense.

[overachiever]

MODERATOR: THIS POST containing the interim report of the Trustee NEEDS TO BE A STICKY.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52779723

[Tavycal]

What I want to see is a list of who these scum bags did pay. They absolutly stiffed everyone.

[janice shell]

That's not very cheerful news, now is it?

It really must be a nuisance to be a receiver.

[puppydotcom]

There also seems to be a significant misunderstanding in emails from shareholders about
the Trustee’s relationship with the SEC. As noted in Mr. Hays’ publicly available resume, he
has been appointed to serve as a receiver in numerous and federal state courts throughout the
United States. Some of these appointments have come in enforcement actions brought by the
SEC. When Mr. Hays has served as a receiver in SEC enforcement actions, he is actually
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appointed by the Federal Court Judge handling the case, not the SEC. Moreover, the role of a
receiver in receivership cases is to look out for the interests of creditors and investors, not the
SEC. Indeed, Mr. Hays is only one of many insolvency professionals whom the SEC
recommends, from time to time, to serve as receivers in matters brought by them. Mr. Hays does
not work for and is not employed by the SEC and has never been paid any salary or
compensation by the SEC. None of his family members work for or are employed by the SEC.
It is a matter of public record in this case that the SEC submitted Mr. Hays’s name to the
Court to serve as a receiver for Spongetech in the enforcement action brought by the SEC.
However, the Court never ruled on the SEC’s Motion and Mr. Hays was never appointed to serve
as receive

[pantherj]

Wow, this guy has his work cut out for him and little or nothing to work with. Excellent report and almost exactly as most of the Bashers expected it would be.

Does it come as a surprise to anyone the Mosky has not provided the Trustee with any of the info necessry for a 10K? And I think Pike very well knew that was the case when he mentionrd the Trustee's "failure" to file financials. That makes me more suspicious of Pike. Pike is either dirty or among the 10 dumbest people on the planet.

[big lug]

This part surprised me.

Why would the insider leave a paper trail for the 6 million dollars?

In addition, Spongetech holds a promissory note from a former insider of Spongetech in the face amount of $6 Million. The Trustee is attempting to collect amounts due under this note but cannot verify, as of the date of this report, whether the note is collectible or not.

Big Lug

[lolwat]

The company is completely crippled by this;

"A great deal of the inventory held by the Debtor consists of sponges produced under licenses granted by the cable network Nickelodeon. Spongetech provided the Trustee with a letter from Nickelodeon which was sent to and received by Spongetech on May 7, 2010 wherein Nickelodeon purported to terminate the license agreement pursuant to which these sponges were manufactured. The letter further states that the Debtor can no longer manufacture or sell any product manufactured pursuant to a Nickelodeon license."

There's nothing left here for anyone.