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Thu 12 Dec 2002 5:57 PM EST

NEW YORK, Dec 12 (Reuters) - Electronic payment service
firm Actrade Financial Technologies Ltd. said on
Thursday that it and one of its subsidiaries, Actrade Capital
Inc., filed voluntary petitions for Chapter 11 bankruptcy.
In addition, the New York-based company said "serious
questions and issues" have been raised regarding operations and
accounting at its suspended international bill-of-exchange
Actrade said it is evaluating a number of disclosure and
financial statement issues relating to, among other things,
past accounting treatment of certain stock options, the proper
amount of reserves for doubtful accounts, and other issues
relating to the accuracy and completeness of prior Securities
and Exchange Commission filings.
Actrade said the filing in the Bankruptcy Court for the
Southern District of New York allows it to continue operating,
but said the two banks with which it has credit facilities have
requested financial statements for the fiscal year ended June
30, 2002, and it is unable to provide them at this time.
Actrade said it is unable to predict whether the banks will
grant a waiver and continue to extend credit to the company.
The company also announced that Chief Executive Alexander
Stonkus, who has been on a paid leave of absence, was replaced
by investment banker and financial consultant Richard
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