Pulver Media, the New York-based company well known for VON, the trade shows for the VoIP industry and a magazine with the same name might be shutting down, joining the dot.gone club, according to sources.
The rumors of the shutdown of Pulver Media first started to show up on some VoIP blogs like that of our good pal, Andy Abramson. I am still waiting to hear back from Jeff Pulver, the founder of Pulver Media. Meanwhile, I spent some time trying to nail down specifics of what exactly went down and have been able to find some details.
According to my sources, earlier this month when the Pulver Media executives were in San Jose, Calif. For the Spring VON, their investors, TICC Capital Group pulled the rug from under Pulver Media, and shut down the company. They also seized control of the bank accounts. As a result many folks saw their checks bounced.
TICC Capital Group, a Greenwich, CT-based investment group that trades publicly on the NASDAQ stock exchange had invested $11 million in Pulver Media in June 2007. The investment was senior secured notes with warrants, i.e. debt.
In a filing with the SEC earlier this month, TICC said
During the first quarter of 2008, Pulvermedia indicated that it was projecting a sudden and dramatic decline in projected revenues and earnings for the coming year … Based upon the review of the company’s financial projections and operating cashflow forecasts, we determined that the debt investment warranted a complete write-down, $10.3 million, and the warrants were written-off as well, in the amount of $300,000. The investment was assigned a credit rating of Grade 5, and was placed on non-accrual status as of December 31, 2007.”
It seems Jeff and his team are trying hard to save the company and might pull a last minute miracle. This is a very sad development for the VoIP industry. Not only this puts one of the big VoIP trade shows at risk, it also is a setback for Pulver, an industry icon and a constant tinker. Stay tuned for more details as they become available.
Disclosure: Our columnist Daniel Berninger is a long time business associate of Jeff Pulver.