By Sakthi Prasad
Nov 7 (Reuters) - U.S. consulting and advisory firm Monitor
Company Group and its affiliates filed for Chapter 11 bankruptcy
protection, court documents showed, and said it has agreed to
sell its assets to global consultancy firm Deloitte.
As per the asset purchase agreement, Deloitte Consulting LLP
will acquire Monitor's U.S. practice, and practices outside the
United States will be acquired by certain other member firms of
Deloitte Touche Tohmatsu Limited.
As a pure-play strategy consultant, Monitor said it was
facing increasing financial pressure as a stand alone business,
forcing it to file for Chapter 11 bankruptcy protection.
Monitor, which offers consulting services to corporations,
governments, and social sector organizations, said that selling
assets to Deloitte through the Chapter 11 route was the best
option.
The company listed both estimated liabilities and estimated
assets for the consolidated group in the range of $100 million
to $500 million, according to a court filing.
The assets will be sold by means of a court-approved sale
under Section 363 of the U.S. Bankruptcy Code.
"We have long admired Monitor for its excellence in strategy
consulting and we are excited about the fit and compatibility of
our practices," Michael Canning, national managing director of
Deloitte Consulting LLP's Strategy & Operations practice, said
in a statement.
The transaction with Deloitte would be completed once the
company gets approval from the U.S. Bankruptcy Court in
Wilmington, Delaware.
The Case is Monitor Company Group Limited Partnerships and
affiliates, Case No. 12-13042, U.S. Bankruptcy Court, District
of Delaware.
Follow us on Twitter @ReutersLegal | Like us on Facebook