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Neverblue Communications Bankruptcy Information

The industry has been talking this morning about bankruptcy notices received from the US Bankruptcy Court that includes the entity “Neverblue Communications Inc” as listed in the bankruptcy. Since the Bankruptcy filing of Velo Holdings, many companies have been concerned that they would not be paid by Neverblue. However, despite the bankruptcy, Neverblue reported that they would be operating as usual, and as a non-US subsidiary they would not be included in the bankruptcy and could pay all affiliates.

So when these notices started showing up this week, people were rightly concerned that they weren’t being told the truth. We contacted Neverblue this morning, and they informed us that Neverblue Communication Inc was not the Neverblue of Canada, that operates the well-known affiliate network, but instead was the operating name for affiliate network AKMG, out of California.

Also listed, besides Neverblue Communications is several other companies in the industry included in the bankruptcy including FYI Direct, Vertrue and Adaptive — all large purchasers of leads on many CPA Networks. This leaves many networks concerned that they will not be paid, or paid in part for money currently owed.

The Bankruptcy notice is below, with “Neverblue Communications” (AKMG) clearly mentioned as a co-debtor, and included int he bankruptcy of Velo Holdings on the second page and is included in the bankruptcy.  It is recommend that anyone owed money speak to their attorney.

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Pesach Lattin

Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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20 Comments

  1. AKMG has already sent a notice to our affiliates on the day of the filing informing them of our naming in the filing. We have paid ALL affiliates up to date (no affiliates were withheld payment due to the filing) and we continue to make payments on time.

    This hype is just a fire alarm, and anyone who is working with AKMG knows that we are running business as usual. If you understand anything about bankruptcy (CH 11) and you can truly interpret the 1600 page bankruptcy filing then you will see this is true. The document that is listed above is a standard doc that is sent to every affiliate in our database. The document that is listed in this blog is NOT the bankruptcy document, it is just a debtor list.

    We are unfortunate in that we were named as we have a very healthy business, this is no fault of AKMG. Neverblue was not named because they are Canadian.

    If anyone has questions about this, feel free to reach out to me, Kim White, directly. My aim handle is “akmgkim” from there i will give you my full contact info.

  2. Only a small percentage of companies that go into chapter 11 actually succeed. This means despite what Kim says there is a 90% chance that their parent company will go out of business.

    Also, despite what AKMG is saying, their company is LEGALLY bankrupt and could be shut down. They have no control over this, as they themselves point out.

  3. i dont buy everythings ok, companies file bankruptcy for a reason they are losing money and need to make cutbacks to survive the losses.no company is financially fine and files bankruptcy thats bs

  4. AKMG is in bankruptcy. Period. They sent the notice of their bankruptcy because they are required by law to inform affiliates that they are bankrupt. There is no good way to spin this.

  5. Why would any affiliate in their right mind even take a chance after seeing this? My advice: Jump ship now before you get caught holding the bag.

    1. Because in a bankrupcy, a profitable business segment is an asset with a value. They wouldn’t just shut it down and not pay affiliates, because continuing the profitable day-to-day operations of the segment is in the best interest of the creditors. Most affiliate networks have almost zero assets to be liquidated, so what do you gain by shutting it down?

      Worst case scenario, if the parent company fails many of the business segments will be split off and sold.

      Affiliate networks should be divested like any investment, don’t get in too deep with one particular network or a small subnet of networks, where you couldn’t survive not getting paid by them or if they paid you but stopped running anything with you.

      1. AKMG is not profitable. They ‘sold’ to velo because they needed cash. now their checks are bouncing.

    1. Hi Bounced Check,

      Any checks that were issued and not cashed before March 31st, had a stop payment placed on them due to the BK filing of our parent company. HOWEVER, there were Western Union checks issued as replacements, that are fully cashable. You should have received this last week, if not earlier. Feel free to reach out to me directly, (AKMGAmber) and I will gladly help you out.

      1. I would just like to confirm what Amber has said. I experienced the same situation as ‘Bounced Check’, and had my March payment reversed. A few days later I received my Western Union and was able to deposit it no problem (receipt: http://imgur.com/xzcZY ). So as far as them paying their publishers to date as they said in their original email, they seem to be on top of that – at least in my experience – which is comforting.

  6. The Scary Part is that these companies will simply be sold off to the highest bidder – perhaps one of the big boys will buy them, just for their book of business and revenue, and shut the company down. It’s been known to happen in other industries.

  7. Sorry AKMG, Nice knowing ya! Word to the wise, do not promote scammy programs or you will also fall by the wayside. Invest in real marketing with real brands and real agencies. Simple.

    1. Hi Dave McGurk,

      I would just like to respond to your commentary. AKMG is not going anywhere, we are in business, still pushing offers and still have a lot of strong relationships with individuals who actually understand the situation. AKMG did not run scammy programs, in fact, most of our network’s offers are branded lead gen campaigns from agencies as opposed to continuity. The campaigns we choose to promote have nothing to do with the Chapter 11 filing of our parent company, Velo Holdings. If you have any other questions or concerns, you can contact me directly as I assume it would be better to go to the source than make assumptions. amber{at}akmg.com.

      1. Amber, lets be honest, you have no idea if your company is going survive. You are an employee of a company that is owned by another company that is going bankrupt.

        Velo Holdings owes $1 Billion.

        A Chapter 11 is a last ditch situation.

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