Dnn update

[Michael Bazzo, CMI]

Got this letter from DNN this morning. Looks like alot of inspectors are SOL for full payment


I am writing to update you on our efforts here at DDN regarding the payment of inspectors and contractors for work performed. I understand the impact that DDN’s inability to pay has caused for you and your families, and I am aware of the hardship it has caused. I deeply apologize for this pain. The few of us still working here on your behalf without compensation face similar hardships; and I personally face the possibility of declaring bankruptcy in the future.

As I previously indicated, I regret that our bank was unable to clear funds to cover the December 15th and January 1st payments. DDN’s bank credit line was abruptly cut off without prior warning that would have allowed us to plan for and cover your payment(s). In addition, some un-cashed checks from the prior payables batches also were not cleared by the bank. All checks that we sent to you were written and processed when our credit line was up and running. They were sent out in good faith and would have cleared if they had been presented for deposit prior to the bank cutting off the line. At no time did we ever knowingly mail a check to any of our service providers that we thought would not be cleared by the bank.

As you know, DDN systems tracked the services rendered by, and the associated amounts owed to, its inspectors and contractors. The company has record of the services provided by each of you. So there is no need to send invoices to the company as there is no one here to process them. For the payments that were not cleared by the bank, DDN has added those amounts back to the amount owed to you. This information is being kept for any future settlement payments made. As a result, the Forms 1099 that the company processes for calendar year 2009 will not include any amounts that were not cleared by the bank.

Under the direction of our bank, a few remaining members of the management team are now working long hours every day to collect outstanding invoices from clients and to try to liquidate the company assets so that we can satisfy the bank’s claim and pay as much of our obligations to both inspectors, contractors, and all other unsecured creditors. Despite these best efforts, we do not anticipate being able to pay our remaining debts in-full. Under direction from the bank, we must repay the secured creditors (including the bank) first before we will be allowed to pay the balance of the unsecured creditors, including inspectors and contractors, as required by law and contract.

I know that several of our competitors are still working in the construction inspection industry including Granite Loan Management, Trinity Inspections, and Northwest Construction Control. Some of our old clients have moved their business to those providers. I believe they all have web-based ways for you to apply to provide inspection services for their clients.

I will provide another update of our progress on February 15th or before.

Doug Stuart
DDN
P.O. Box 708146
Sandy, UT 84070-8146

[Bruce M. Graham]

Nick,
Any word on the purchase of DDN?

[Joseph Burkeson, CMI]

How nice, you won't have to pay taxes on money you didn't receive.

[Brian E. Kelly]

Originally Posted by jburkeson1

how nice, you won't have to pay taxes on money you didn't receive.

:d:d:d