A profile of the AUTO reverse merger:
Sunteck Transport, Inc. (AUTO) merged into the shell of AutoInfo, Inc. and retained the name AutoInfo.
The AutoInfo shell was cleansed through a Chapter 11 proceeding, with the original shareholders and creditors of AutoInfo ending up with a significant interest in the new company.
AutoInfo, which previously had operated as an automobile finance company, had a negative net worth of approximately $9.3 million when it filed a reorganization plan pursuant to a Chapter 11 action on February 2, 2000. On June 22, 2000, the company entered into a merger agreement with Sunteck Transport. On December 7, 2000, the company raised $575,000 in convertible debt. Its previously approved reorganization plan became effective as of that date.
Post-bankruptcy, the company had 27,297,923 shares outstanding. The former shareholders of AutoInfo had 7,756,952 shares of the new company and the creditors ended up with 9,540,970. Harry Wachtel, the owner of Sunteck, ended up with 10 million shares in the new company. Wachtel purchased $200,000 of the convertible debt.
On February 2, 2000, June 22, 2000 and December 7, 2000, the price of the common stock closed at $.09, $.15 and $.03, respectively. As of February 2, 2004, the stock is at $.40 per share.
As of December 7, 2000, the date that the transaction closed, the old shareholders of AutoInfo had stock valued at $233,000; the creditors had stock valued at $286,000; and Harry Wachtel, the owner of Sunteck, had stock valued at $300,000. The creditors also received cash equal to 3% of their original claims.
It is interesting to note that William Wunderlich, the former CFO of AutoInfo, stayed on with the new company and appears to be a significant participant in the operations of the new company.
Sunteck, which appears to have begun operations in 1997, is profitable.
Revenues (in thousands)
2003: 25,000 plus (estimated)
2002: 18,863
2001: 8,029
2000: 3,389
1999: 3,457
1998: 2,388
1997: 384
The Form 10-K for the year ending December 31, 2002 can be found at:
sec.gov
The Multex business summary:
finance.yahoo.com
AutoInfo, Inc. is a full-service third-party transportation logistics provider through its wholly owned subsidiary, Sunteck Transport Co., Inc. The Company's services include ground transportation coast to coast, local pick-up and delivery, warehousing, airfreight and ocean freight. The Company has strategic alliances with less-than-truckload, truckload, air, rail and ocean common carriers to service customers' needs. The Company has five regional operating centers and representatives in 12 states and in Canada. The Company's services include arranging for the transport of customers' freight from the shipper's location to the designated destination. The Company does not own any trucking equipment and relies on independent carriers for the movement of customers' freight. However, the Company seeks to establish long-term relationships with customers and provide a variety of logistics services and solutions to eliminate inefficiencies in the customers' supply chain management. |
