FREQUENTLY ASKED QUESTIONS: CYBERREBATE.COM, INC.
ABOUT THE BANKRUPTCY PROCEEDING:
1) When did CyberRebate.com, Inc. file its bankruptcy?
A petition under Chapter 11 of the Bankruptcy Code was filed by CyberRebate.com, Inc. on May 16, 2001 in the United States Bankruptcy Court for the Eastern District of New York. The case number is 101-16534-608, and the case has been assigned to bankruptcy judge Carla E. Craig.
2) What about my unpaid rebates?
Under the Bankruptcy Code, rebates which remained unpaid as of the bankruptcy filing are frozen along with the rest of CyberRebate's pre-filing liabilities. Because of the bankruptcy filing, no rebates may be paid until a plan of reorganization is confirmed.
3) Why did some rebate checks bounce? Will replacement checks be issued?
Under the Bankruptcy Code, checks issued prior to the filing date and presented for payment following the filing date cannot be honored. Additionally, because of the bankruptcy filing, no replacement payment may be made until a plan of reorganization is confirmed.
4) How can I file a claim in the case?
You will receive notification in the future as to where and when to file a claim. That notification will include the appropriate forms.
INFORMATION ABOUT THE BANKRUPTCY
5) How can I find out more about CyberRebate.com, Inc.'s bankruptcy proceeding?
For additional information about our bankruptcy, including claim filing, visit the Bankruptcy Court Web site at www.nyeb.uscourts.gov. Click on the "CyberRebate Info." link and read the latest announcement posted there by the Bankruptcy Court.
6) Who is representing the creditors of CyberRebate.com, Inc.? How can I reach them?
The law firm of Robinson Silverman Pearce Aronsohn & Berman LLP has been appointed to represent the Official Committee of Unsecured Creditors, which committee includes former CyberRebate customers who may be owed rebates. Please direct all questions with respect to the bankruptcy proceedings to Mr. Marc Tomao of Robinson Silverman at (212) 541-1118 or e-mail [email protected]
7) Can I return products I've already received?
For a number of reasons, CyberRebate cannot accept returns of merchandise. Therefore, no returns should be sent either to CyberRebate's corporate offices or to the warehouse from which orders were processed. Any returns sent may not be properly received or returned to you. However, Capital City Bank, one of several banks that processed credit card transactions for CyberRebate, has begun requesting returns from certain customers. Click here for information on this process.
8) Where is the rebate status information?
For a certain period following the bankruptcy, CyberRebate had posted customer account information, including purchase history and rebate information, at its Web site. That service is no longer available.
9) How was the lawsuit between CyberRebate and Paymentech resolved?
Pursuant to a Stipulation and Agreed Order Settling Adversary Proceeding (the "Stipulation") approved by the Bankruptcy Court on November 14, 2001, CyberRebate, Paymentech Merchant Services, LLC ("Paymentech"), which was one of CyberRebate's former credit card processors, and the Official Committee of Unsecured Creditors agreed as follows:
the litigation between CyberRebate and Paymentech was dismissed with prejudice;
Paymentech: (i) received $4,150,000 from CyberRebate and (ii) applied the $4,571,098 remaining in the reserve account maintained by Paymentech (collectively the "Settlement Amount") in payment of its claim against CyberRebate for chargebacks to credit card customers;
if the Paymentech claim, as ultimately allowed after all chargebacks are finalized (the "Allowed Claim") is less than the Settlement Amount, then Paymentech will refund the difference to CyberRebate's estate;
if the Allowed Claim is greater than Settlement Amount, Paymentech will not share in any distribution until the other unsecured general creditors receive a distribution of 10% of their allowed claims; and
to an exchange of releases including the termination by Paymentech of all liens against CyberRebate's assets