Creditors are planning to meet July 26 to determine how to respond to Springbok Services Inc.'s recent bankruptcy filing.
KeyCorp of Cleveland has filed the largest claim, $15 million, against the Englewood, Colo., prepaid card marketer, and is focusing its attention on preventing problems for cardholders. Key issues a portion of Springbok's Visa-branded prepaid cards.
Springbok filed for Chapter 11 bankruptcy protection June 18 in the U.S. Bankruptcy Court in Colorado, according to court documents.
"Key has arranged for Springbok to continue processing and servicing outstanding card transactions for 90 to 120 days during the bankruptcy case," a bank representative said. Springbok's attorney did not respond to a request for comment.
A recorded phone message at the company's headquarters confirmed the bankruptcy filing and said most of the staff had been let go "except for a bare-bones crew." Some cardholders already have experienced difficulties.
Springbok manages a rewards program for TXU Energy Retail Co. LLC, a Dallas utility company. Customers enrolled in two different rewards programs received a Visa-branded card.
Most of those customers now cannot access the funds in the card accounts. TXU is unsure of the total value in the accounts and how many customers are affected. The utility company is seeking $95,467.80, according to documents filed with the bankruptcy court.