On Thursday, Michael Ong of Burke Capital Corporation filed a voluntary chapter 11 bankruptcy petition on behalf of Bebo.com, Inc., which appears to be the company which acquired the assets for bebo.com from AOL in 2010.
In support of his having authority to file the bankruptcy petition on behalf of the company, Mr. Ong also filed a copy of a March 5, 2013 Order of the California State Superior Court for the County of San Francisco, in which Judge Marla Miller appointed Mr. Ong as the receiver for the company. The order contains a paragraph expressly authorizing Mr. Ong, in his role as the receiver, to “file a bankruptcy petition on behalf of the company and receivership estate and commence a bankruptcy proceeding under Chapter 7 or Chapter 11 of the U.S. Bankruptcy Code.”
Bebo.com was a social networking site founded by Michael Birch and his wife Xochi Birch in January 2005. In 2008, they sold the company to AOL for a reported $850 million. However, in 2010, AOL announced that it planned to sell or shut down bebo.com. AOL subsequently did sell the site for an amount rumored at the time to be in the neighborhood of $10 million.
In Thursday’s court filings, the company listed assets and liabilities both in the range of $1 million to $10 million.
According to bankruptcy court filings, both Criterion Capital Partners, LLC and Hecker Consultancy, LLC directly or indirectly own 10% or more of Bebo.com, Inc.’s equity securities. The largest unsecured creditors are identified in court filings as:
- Internal Revenue Service ($380,000)
- Criterion Capital ($314,000 – disputed)
- AOL Advertising ($120,900 – subject to setoff, according to Bebo)
- Quality Technology Services ($120,000)
- e-DBA Limited ($43,571)
A copy of the chapter 11 petition filed for Bebo.com, Inc. is embedded below.