Nuthin really new from Scrip's Website
Fundraising Help
From what I've seen follow up with the Fresno Attorney Generals Office, the FBI (file a complaint if you havent with them) and the CA State Attorney General
If Scrip Advantage owes you money, get ready to wait - and wait. After they emerge from bankruptcy protection and find about $8 million in new investments if it is to ever pay back even a fraction of the millions it owes schools and nonprofit groups.
The company revealed its plan to file for Chapter 11 bankruptcy protection during a meeting Thursday with about 40 of its customers, who are among a group owed refunds for undelivered gift certificates.
No one is likely to get money anytime soon.
Instead of paying customers back, Scrip will offer ownership stakes in the company. But there's a caveat. The company must come out of bankruptcy and find new investments of at least $8 million, said Riley C. Walter, a Fresno bankruptcy attorney representing the company.
"If they can't, then the creditors get nothing,"
Scrip ran into financial troubles when an investor reneged on a $2 million pledge, Walter said. That led another key investor, IIG Capital of New York, to pull its $5 million credit line, leaving Scrip short the cash flow it needed to fulfill gift certificate orders, he said.
The Better Business Bureau of the San Joaquin Valley was flooded with complaints and the Fresno County District Attorney's Office and Fresno Police Department launched investigations that are ongoing.
Meanwhile, schools, which rely on the gift certificates to raise money for basic operations, were left empty-handed.
In total, Scrip owes $10.2 million to unsecured creditors, about two-thirds of which is owed to schools and nonprofit groups, Walter said.
Under the plan, unsecured creditors would be given stock equal to the proportion of debt they are owed. In total, the
unsecured creditors would hold a 20 percent stake in the company.
Scrip has no investment commitments in writing but that financial advisers believe the $8 million can be raised.
So, the complicated financial plan "means absolutely diddly.
I'll gladly pay you Tuesday for a cheeseburger today