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Professional Security Technologies

Battered but unbowed

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Tuesday, August 7, 2012

Wayne Wahrsager’s New York Merchants Protective Co. Inc.—an alarm company in existence for more than 100 years—is no more as the result of a $20 million breach-of contract lawsuit filed against the company and Wahrsager last year by Bank of America.

But Wahrsager tells me he is still very much a player in the security industry—and planning to launch a new alarm company in October with $50 million in funding behind it.

“You just brush yourself off and start all over,” he told me this week.

It seems that what Wahrsager experienced over the past year and half would have had most people down for the count.

First, in January 2011, came the Bank of America lawsuit contending it was owed more than $19.2 million for the default of a loan.

Then, four months later, Wahrsager got fired from his job as president of NYMP and pretty much literally got thrown out of the company’s Freeport, N.Y.-based office by the receiver a judge appointed to run the company. The receiver changed the locks at the office to keep Wahrsager out but he just took his office door off its hinges and continued coming to work until a judge ordered him gone that May.

Then, last October, the judge approved the sale of NYMP’s assets to pay off creditors. The sale to Professional Security Technologies of New Jersey was completed earlier this year, Wahrsager told me.

He’d been involved NYMP since 1988, but the previous owners were cousins so it was a family business that turned 100 years old in 2010, he said.

Wahrsager contends that the company went for far less than it was worth, and that if Bank of America had been willing to work with him, he would have repaid the loan “100 cents on the dollar.” He said he’s still a named defendant in the lawsuit, which is still pending.

But Wahrsager said he’s working as a consultant for Bellmore, N.Y.-based Commercial Fire & Security, which he said was formed about a year ago.

And he’s involved in the start up of a new company that he said has a group of investors behind it and is expected to launch by the end of October if all goes as planned. The company may be called Commercial Fire & Security—the new company may acquire the existing one—or take on a new name, he said. It will be based somewhere on Long Island, Wahrsager said.

Stay tuned—it looks like another round for Wayne Wahrsager.

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.