True.com Bankrupt and Owes $100MWritten by Pace Lattin
August 7, 2012 # 5:50 pm # Industry News, Specials # 38 Comments
Unfortunately more bad news that will affect affiliate networks and affiliates. Mega-advertiser True Beginnings aka True.com has filed chapter 11 Bankruptcy protection in Texas Federal Court. True.com has long been a major advertiser in the affiliate space and made a name for itself in the industry for many of its overly sexy ads.
The really bad news is that, according to the filings it owes up to $100M to creditors in amounts from $1M to $10M. One can only assume that this includes several CPA Affiliate networks and publishers, many who had already entered into payment agreements with True.com after they failed to pay their bills.
A current search of CPA networks shows that more than a few CPA companies including EWA, ProfitKings Media and CPATrend are as of this writing, still running offers from True.com. One can assume that this bankruptcy filing has taken them by surprise.
According to the filing, there are at least 255 non-insider secured creditors owed, most of them unlikely to be paid what is owed, since the secure creditors, including the founder are owed as much a $61.5 Million.
The case is 4:12-bk-42061 in Texas Eastern Bankruptcy Court
Sponsored by React2Media
Pays All the Time. Backed by Adpepper!