Netcentives files under Chapter 11; programmes to continue
Netcentives has filed under Chapter 11 and plans to auction its business assets next month. Meanwhile, its programmes continue.
San Francisco-based provider of personalised e-mail, reward and recognition solutions, Netcentives, has filed a voluntary petition for reorganisation under Chapter 11 of the US Bankruptcy Code. The company intends to keep operating all of its existing loyalty programmes, including the ClickRewards, Delta SkyMiles Shopping, and United MileagePlus Shopping rewards networks and the Email Marketing Group. The company is selling its business assets in an auction planned for November.
Restructuring plan According to Netcentive's CEO, Eric Larsen, "The filing is an important step in protecting the value of our loyalty and email business operations and the underlying intellectual property, patents and source code, as we seek to sell the company's business operations. The asset auction is a continuation of a restructuring plan announced earlier this year in which we are now divesting assets and reviewing payables under the guidance of the court to prioritise liabilities and preserve cash flow for creditors and, potentially, shareholders."
Netcentives has signed a letter of intent to sell its Email Marketing Group (subject to competitive bids and bankruptcy court approval) to Plum Acquisition Corporation. The company has enough cash on hand to finance its operations through auction of its assets, including supporting its post-petition trade and employee obligations.
Patent licensing agreement Meanwhile, Netcentives has just signed a multi-million dollar patent licensing agreement which allows an as yet unnamed Internet media company to operate the online portion of its rewards programmes under two of Netcentive's patents.