| 09 October 2009

If this article is confusing, that is, at least in part, the point. Orlando-based Telligenix Corporation bought what was left of Dallas-based Dynetech three days ago, and then filed for bankruptcy today in Orlando. This news comes a little over two months after we reported that MB Trading was buying WizeTrade, a Dynetech company based in Dallas.

Last week Texas prosecutors filed suit against a host of companies, including Telligenix, Business Skills, formerly known as Dynetech Training & Simulation, American Cash Flow Corporation, B2G Institute Inc., and B2G Ventures. The suit claims the companies violated the State's deceptive trade practice and consumer protection laws, and in particular named the sales seminars as the problem.

The confusing flurry of mergers, acquisitions and layoffs (up to one-third of the workforce) looked like the final moves of a desperate company trying to unwind itself in the face of one of the worst recessions we've seen. But the pace and number of transaction are now, in all likelihood, under serious consideration in the courts, according to an article in the Orlando Sentinel today. If any of the recent sales were completed at less than full market value then creditors would likely have reason to want to reverse the deals, which the court could do.

According to the article, the Chapter 11 filing cited outstanding debt of $50 million and assets of just $1 million to $10 million.

MB Trading’s announced acquisition of WizeTrade was third such announcement this year as the brokerage industry consolidates with the investment education industry. OptionsXpress (OXPS) announced the close of its deal with Optionetics on May 4th and TD Ameritrade (AMTD) closed its acquisition of thinkorswim in June.