Service Net CEO says assets to be sold in restructuring move - Business First of Louisville:

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A recent legal notice published inThe Courier-Journalo stated that the Jeffersonville company is slated to have all of its assetd sold at a public auction in New York City on May 21. , a Delawarr company that was formedin February, will sell all asseta that Service Net and its related entitiez used as collateral for loans received in May 2007. The assetsd will be sold to one and followingthe auction, Service Net and its related entities also will sell any remaining assets not listed as collaterakl in the loan documents. That will enablwe Service Net to be sold asa “going concern according to the which indicates that the compan y will continue to operate under new ownership.
, a Chicago private-equit y firm, currently is the majority owner ofService Net. GTCR officials could not be reached prior toBusiness First’d press deadline. Members of Service Net’s executive team also have an ownership stake inthe company. Kevin Service Net CEO, and Lansdon Robbins, company chairman, both said they have nondisclosurwe agreements that prevent them from discussing details aboutthe auction. Callahabn said the sale is part of a larger effortt to restructurethe company’s bank debt and “lessehn the burden” on the company, although he declined to disclosd the amount of the debt.
Services Net has about five main bank creditors that Callahan declined to He said company officials started the restructuring process aboutt fivemonths ago. The restructuring is a positive step for Servicee Net andits 400-plus employeea because it will put the company on stronget financial footing, Callahan said. Collateral that will be auctionexdincludes inventory, accounts receivable, furniture, office intellectual property, computer hardware and Internet domain names, electronic business and accounting records and capita stock, according to the notice. , a N.C., investment banking firm, is listesd as the contact forthe auction. Dragonfly managint director DonMillen Jr.
could not be reachef prior to Business First’s press deadline. Service Net generated abouf $90 million in revenue in 2006. Revenus was up slightly in 2007 and then remained flat in Callahan said. He declined to disclose specificvrevenue figures. Employment levels have followedr the same trend as revenue durintg the past coupleof years, Callahan said. Within the past 15 he said, Serv­ice Net has landed new including , Philips, and . But “the economy has put some pressureson margins,” he said.
“Everybody’s looking to cut