MARLBOROUGH, Mass., April 19, 2014 /PRNewswire/ -- TelexFREE LLC issued the following statement:
TelexFREE is concerned about recent inaccurate press reports and speculation regarding the Company and would like to set the record straight.
Joe Craft, TelexFREE's former consulting CFO, has been wrongfully accused of attempting to unlawfully remove funds or property from a TelexFREE location. The reports that Mr. Craft attempted to abscond with a laptop and cashier's checks are false.
The cashier's checks were in Mr. Craft's possession because the Company's bank accounts had been closed, which necessitated the Company obtaining the funds in the form of cashier's checks. Upon the filing of the Chapter 11 cases, the Company determined to marshal all of the Company's funds for the benefit of the Chapter 11 bankruptcy estate. Mr. Craft had taken possession of the cashier's checks at the request of the Company's counsel and advisors in order to assure that the estate funds were protected. Mr. Craft was holding the checks until they could be deposited in either a newly-established Company safe deposit box or an escrow account that the Company was in the process of establishing. The laptop was Mr. Craft's personal property.
Acting as Interim CFO for TelexFREE, Mr. Craft explained both the motive and the purpose of the transfer of funds to government officials onsite at the time the warrants were served. Counsel for the Company also informed the Securities and Exchange Commission of these facts yesterday. It is unfortunate that the filings and media reports ignore these facts.
Hundreds of thousands of customers and independent sales associates rely upon our products and services. Many of those customers and sales associates have reached out to the Company to express their support for TelexFREE and their hope that the Company will be able to continue to operate. The goal of the Chapter 11 case is, in part, to restructure the Company's business model and emerge from Chapter 11 for the benefit of those parties.
Alvarez & Marsal North America, LLC is serving as restructuring advisor to the Company and Greenberg Traurig, LLP and Gordon Silver are serving as legal advisors to TelexFREE.
TelexFREE is a private company headquartered in Marlborough, Mass., with offices in a number of regions around the world.
SOURCE TelexFREE LLC