Financially rocky professional services firm LECG has transitioned parts of its forensic accounting practice group to FTI Consulting Inc.
The transition involves approximately 25 employees, LECG said Thursday. Financial terms of the deal were not disclosed.
LECG has been selling parts of its firm to FTI, as well as Grant Thornton and WeiserMazars in recent weeks (see LECG Sells Practices to FTI, Grant Thornton, WeiserMazars). The cash-strapped firm has been working out repayment deals with its lenders and selling various practices to other accounting and consulting firms to raise money.
With the advice of its restructuring advisors, LECG said it continues to negotiate the transition of all of its remaining practice groups after Thursday’s transaction and the transactions it had previously disclosed. LECG will use the proceeds from all practice group transitions to repay the $27.8 million in principal outstanding under its credit facility.
The public traded company said it would also 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,” said LECG. “The company believes that the transitions and these transactions will not result in any proceeds for the common shareholders.” LECG’s stock was trading at $0.25 a share at the close of trading Thursday.
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