More NewsmarchFIRST Sells Assets to Divine, Epic Software

marchFIRST Sells Assets to Divine, Epic Software

The bankrupt consulting firm is seeking court approval for asset sales to Divine and Epic Software. Also, Divine has agreed to cover some of the company's "operating shortfalls."

A week after Internet consulting firm marchFIRST Inc. filed for Chapter 11 bankruptcy protection, the Chicago-based company is quickly moving to resolve its obligations and announced today its intent to sell its HostOne ASP business to Divine Inc. and the assets of its New York, New Jersey and Boston offices to Epic Software & Services Inc.

Both of these agreements are subject to approval from the bankruptcy court, however.

The bankruptcy filing listed assets and debts of greater than $100 million each, according to court papers, with creditors numbering over 1,000.

Indications of the sale to divine were first reported March 30, two days after NASDAQ halted trading of the company’s stock.

marchFIRST said divine has agreed to cover certain operating shortfalls of the Houston business and to assume certain liabilities of the business. Financial specifics were not disclosed.

Epic would pay marchFIRST some cash at closing, assume certain liabilities and future cash payments based on collection of accounts receivable and revenue generated over the next five years.

marchFIRST said that it “continues to be in active discussions for the sale of other domestic and foreign business units.”

But the news is not good for holders of the company’s common stock. marchFIRST said any cash proceeds received from these transactions or others are to be distributed to creditors and, if creditors have been fully paid, to holders of marchFIRST’s preferred stock and then holders of its common stock.

“However, as previously indicated, at this time it is unlikely that any proceeds will remain for distribution to holders of marchFIRST’s common stock,” the company said.

Formed by the merger of Whittman-Hart and USWeb/CKS in 1999, marchFIRST had been downsizing its workforce: early this year, 550; and last year a total 2,100 people were let go.

Related Articles

GDPR: The role of technology in data compliance

Data & Analytics GDPR: The role of technology in data compliance

3w Clark Boyd
What companies can learn from the We-Vibe lawsuit about the Internet of Things

Legal & Regulatory What companies can learn from the We-Vibe lawsuit about the Internet of Things

8m Al Roberts
Has advertising arrived on Google Home?

Media Has advertising arrived on Google Home?

8m Al Roberts
Is Twitter slowly dying?

More News Is Twitter slowly dying?

9m Al Roberts
FedEx launches fulfillment service to take on Amazon

Ecommerce FedEx launches fulfillment service to take on Amazon

9m Al Roberts
Target is the top retail digital marketer, so why is it struggling?

Ecommerce Target is the top retail digital marketer, so why is it struggling?

8m Al Roberts
YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

More News YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

9m Al Roberts
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts