Less than a month after SNT Media shareholders filed a lawsuit against the data company alleging it is not what it claims to be, the company may be on the verge of filing Chapter 11 bankruptcy to reorganize.
“The board has voted to potentially file … bankruptcy,” says Gary Oborny.
The Occidental Management chairman and CEO has been an SNT board member. Now, he’s leading reorganization efforts for the struggling business.
“I have accepted the position of president for SNT,” Oborny says.
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“There are many challenges, but I believe in the employees of SNT, and I am willing to step up and try to reorganize.”
For SNT, or Social Networking Technology, to continue, Oborny says he and the 36 employees who remain at the business in the High Touch building downtown “are going to have to work as a team to get things done.”
There are at least four recent lawsuits against the company, which also has lost its founders and all of its senior staff.
SNT stockholders Kevin Wagner and SP SNT Holdings LLC filed a Dec. 15 lawsuit in U.S. District Court against the company and several former executives that alleges they didn’t follow rules regarding the sale of stock and also misrepresented several aspects of the business. That includes its cash flow and technology among other things, and the investors are asking for the return of their $1 million investment plus interest and legal fees.
U.S. Protective Service LLC, which provided armed security at SNT, filed an Oct. 30 lawsuit in Sedgwick County District Court against the company alleging breach of contract. The company is asking for damages of more than $75,000.
Also in District Court, Sandifer Engineering & Controls Inc. filed a Nov. 21 lawsuit against SNT alleging nonpayment for delivery and installation of security equipment totaling almost $32,000.
Three days after the shareholders filed suit, the Guardian News & Media LLC filed a District Court lawsuit alleging nonpayment for site advertising on TheGuardian.com. The Guardian suit says SNT is behind in payments by almost $804,000.
Oborny won’t address specific issues at SNT except to say there are challenges and that he believes there’s potential “for this company to continue.”
Of course, Oborny already has a full-time job at Occidental, which is redeveloping Union Station among other things.
“I have a tremendous team at Occidental,” Oborny says. “They do a great job, and I think we’re a well-established company.”
Oborny says that allows him the ability to take on the SNT presidency.
“I’m putting in a lot of hours right now,” he says. “You do what you need to do.”