RealTime IT News

Student Advantage Restructures Debt, Mulls Options

Student Advantage , a firm that allows college students to register online for discounted goods and services, remains in talks to sell the company to an investor group led by its president and CEO Raymond V. Sozzi, Jr.

The offer from Sozzi and a group of investors was originally floated in late September. At the time, the proposed purchase price was between $1.50 and $1.75 per share. But that was before the company received a delisting notice from Nasdaq (which it will appeal in a hearing Jan. 10).

In addition, the company is being sued over payments received under an agreement with CollegeClub.com, a company it purchased in 2000. Boston-based Student Advantage believes it will prevail, however concedes its financial condition and liquidity will suffer "significant harm" if its loses, according to regulatory filings.

At midday today, the stock traded under 50 cents per share.

In a series of financial moves, Student Advantage did manage to restructure its debt, winning forgiveness of about $6.2 million of its current debt from Reservoir Capital.