More on Swap-A-Debt: Sometimes lenders can't find cash either.

This week, on behalf of Prosper Lending Review, I contacted Edward DeFeudis, Chairman of Swap-A-Debt (OTCBB: SWPD) in hopes of scheduling an interview with Mr. Defeudis or Marco Geribaldi, the company’s President.

I can verify that Tom’s suspicion about Swap-A-Debt being some time off from a real launch is correct.

When I contacted the company’s office, I was met with a confused “Hello” followed immediately by “How did you get this number?” As it turns out, I’d reached the company’s chairman himself. I reminded Mr. DeFeudis that the officers of publicly traded companies are supposed to be public record as a matter of SEC regulation and I was very impressed that he answered his own phone. It wasn’t long before I began to suspect his might be the only phone in the operation. (Company president Marco Geribaldi’s phone rings only to a busy signal).

After explaining my purpose was to obtain an interview for Prosper Lending Review about the Swap-a-Debt Web site that we discovered and announced a few days ago, a very pleasant Mr. DeFeudis told me that “nobody knows about us, and we’d like to keep it that way for a little while.”

I pressed further asking about the recent launch and how many loans have been offered on the site thus far. Mr. DeFeudis informed me that the site “works” but that no loans have been offered at this time and that they’re not exactly open for business as they’re in the middle of a Web site redesign and working out some “legal things” which he didn’t seem to want to explain.

Clearly, Mr. Defeudis isn’t ready to promote Swap-A-Debt, even though we’re all excited to hear about it. I sent him my card and told him to call me when he’s ready for some publicity because all of our readers want to know the scoop.

In the meantime, my curiosity piqued, I’ve decided to read through the last couple of SEC fillings via EdgarOnline. Here I’ve learned some fascinating stuff.

Interesting excerpt from the balance sheet revision (October 31 un-audited to January 16, Audited)
BALANCE SHEET DATA: As of October 31, As of January 31,

Current assets $ 199,287 $ 384,360

Total assets $ 305,660 $ 494,398

Total liabilities $ 355,178 $ 1,661,583

Stockholders’ equity (deficit) $ (49,518) $ (1,167,185)

Under “liquidity and capital resources” the company’s report states:
Our auditor had determined that based on our financial condition there is substantial doubt as to whether we can continue to operate as a going concern.
The report also says: “In addition, we may not be able to raise additional funds on favorable terms, if at all.”

Swap-A-Debt Stocks are trading on the penny stocks board at an all-time low of $0.11, making this two-man operation worth an impressive $5Million. Not too shabby considering after opening nearly a year ago, they have yet to commence operation.

We’re waiting to see what Swap-a-Debt has to offer us when they are ready to launch for real this time.

For your reading enjoyment, here are my sources:

A very interesting article about Swap-A-Debt company President Marco Geribaldi’s eclectic and impressive work history, from advising members of the Presley family about Graceland operations to IBM and Helicopter companies.

The SEC’s Warning about Microcap Stocks: