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Judge OK’s NYMP sale

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Thursday, October 20, 2011

It’s official: A federal judge issued an order yesterday giving the green light for the financially embattled New York Merchants Protective Co. to be sold to Professional Security Technologies LLC in order to pay off creditors.

The written order by U.S. District Court Judge Denis Hurley describes the asset purchase agreement for the New York-based alarm company—in existence for about 100 years—as “fair and reasonable and in the best interest of the estate.”

The order says the purchase price includes “(a) fair market value for inventory and vehicles, (b) a sixteen (16) multiple for all performing customers of NYMP, New York Merchants Alarm Response, Inc. and NY Merch. Prot. Co., Inc. (the "Sellers"), (c) the ability to procure a substantial upward purchase price adjustment of a fifteen (15) multiple as each of the performing customers become “perfected” (i.e. contracted), and (d) an additional two (2) multiple for those customers who remain performing and but do not become “perfected” customers.”

NYMP has been in the news because Bank of America in January sued NYMP and then-owner Wayne Wahrsager for about $20 million for allegedly defaulting on a loan.
Then, in August, a receiver a judge appointed to oversee the company put it up for sale. Wahrsager, who is no longer a part of the company, has characterized the pending transaction as a “fire sale.” He claims the receiver, who fired him this summer, was mismanaging NYMP.

However, the judge in his order said, “The Receiver has demonstrated good, sufficient and sound business reasons and justifications for entering into the transactions contemplated by the APA (asset purchase agreement), and the APA represents the reasonable exercise of the Receiver's business judgment and the highest and best offer received by the Receiver.” The judge gave the receiver permission to execute the sale immediately to Professional Security Technologies of Nutley, N.J. According to New York state public records, Richard Rockwell is listed as the principal contact for the company. He also is the owner of a Maine company, Main Security Surveillance.

I’ll be reporting more on this story.

Proposed NYMP sale pending

But former owner of century-old security company claims it’s a 'fire sale' for just pennies on the dollar
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09/30/2011

FREEPORT, N.Y.—The New York Merchants Protective Co. Inc., a financially embattled New York-based alarm company that has been in the same family for about 100 years, was put up for sale late this summer.

NYMP still up for sale and Pro 1 proactive

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Thursday, September 29, 2011

Here are a couple items of interest:

One is a short update on something I wrote about earlier this month: The proposed sale of the New York Merchants Protective Co. The sale is still awaiting a federal judge’s decision.

The financially embattled New York-based alarm company—owned by the same family for about 100 years—has been in the news because Bank of America in January sued NYMP and owner Wayne Wahrsager for more than $19.2 million for allegedly defaulting on a loan.

Then, in August, a court-appointed receiver overseeing the company posted newspaper ads putting it up for sale. The notice said the company would be sold to Professional Security Technologies LLC unless the receiver got a better offer.

A judge was slated to hold a hearing on Sept. 16 on whether a sale should go forward. Then the hearing got moved to Sept. 20 and then to Sept. 26.

I’ve been checking court records and there’s been no decision yet. I checked in with Wahrsager, who is no longer a part of the company, but has characterized the pending transaction as a “fire sale.” He claims the receiver, who fired him this summer, is mismanaging NYMP.

Wahrsager told me in an email: “I would simply say that the court adjourned the matter and has not approved the buyer.  The court is evaluating the statute to determine whether the receiver complied with what he was supposed to.”

Another item that just came across my desk almost made me think it was still summer, instead of fall.

Protection 1, the Romeoville, Ill.-based home security giant, put out a release saying it has received reports that door-to-door salespeople in the Boston area are falsely claiming they work for Pro 1. “These individuals are persistent and have been reported to harass customers until they agree to sign a new contract for a fraudulent system upgrade,” Pro 1 said. Sounds like the kind of complaints made quite frequently during the warmer months when the summer sales model companies are active.

Pro 1 is being proactive about the issue, sending out a release with tips for customers to protect themselves and urging them to call Pro 1 to verify a salesperson’s employment status.

Termination of NMYP president upheld

Judge said receiver running financially troubled company had right to fire Wayne Wahrsager
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05/05/2011

FREEPORT, N.Y.—A federal judge this week upheld the firing of Wayne Wahrsager from his job as president of New York Merchants Protective Co., Inc. (NYMP).

Rx for former Smith and Wesson dealers?

NationWide readies new ‘Security Doctors’ program
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04/28/2011

FREEPORT, N.Y.—As members of the defunct Smith & Wesson Security Services dealer program face an April 30 deadline to strip away that gun manufacturer’s name from all their security products, a substitute dealer program is taking shape: Security Doctors Alarm Services.
NationWide Digital Monitoring Co., which previously ran the Smith & Wesson dealer program, should have its Security Doctors dealer program  fully up and running by June 1, according to Aaron Wahrsager, NationWide president.

NYMP court hearing set for April 27

NYMP president Wahrsager says company is being mismanaged by receiver
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04/21/2011

FREEPORT, N.Y.—Wayne Wahrsager, president of New York Merchants Protective Co., Inc. (NYMP)—a full-service alarm company here that’s been in his family for more than 100 years—contends the company’s court-appointed receiver is grossly mismanaging the business, causing “staggering waste and losses,” and also trying to fire the person vitally needed to ensure the business survives: Wayne Wahrsager.