After last week’s news of LECG Corp. selling off pieces of itself to FTI Consulting, Grant Thornton and WeiserMazars, today the company announced that it has also sold its forensic accounting practice in San Francisco to FTI:
Professional services firm LECG Corporation (NASDAQ: XPRT) announced today that it has transitioned its San Francisco forensic accounting practice to FTI Consulting, Inc. The transition involves approximately 25 employees.
Not only that but the pieces left are also up for bid for anyone interested, although common shareholders shouldn’t expect to see anything:
With the advice of its restructuring advisors, LECG continues to negotiate the transition of all practice groups remaining after today’s transaction and transactions disclosed in previous public communications. LECG will use the proceeds from all practice group transitions to repay the $27.8 million in principal outstanding under its credit facility. The company will use the balance of any proceeds to make payments to other creditors. Contractually, if there is any remaining value available to equity holders, it would be first allocated to the company’s outstanding preferred stock. The company believes that the transitions and these transactions will not result in any proceeds for the common shareholders.
The Philly Business Journal reports that the company still has about 500 employees left but at the rate things are going, they’ll be elsewhere by St. Patrick’s Day. Good luck to everyone affected.
LECG Transitions Parts of Forensic Accounting Practice Group to FTI [LECG]
LECG jettisons another practice group, this time in San Francisco [PBJ]
WeiserMazars Moves into Chicago as Part of Acquisition of LECG Units [GC]