ADL Files Chapter 11; CEO Resigns

The world’s first management consulting firm Arthur D. Little filed for　Chapter 11 bankruptcy protection today and will be auctioned off in the next 45 days.
Cerberus Capital Management the firm’s primary lender since June signed a definitive agreement to buy the firm assuming its offer of $71 million is the highest bid. The firm is carrying debt of between $90 million and $100 million says ADL spokesman David Lampe.
Also today Pamela McNamara resigned as CEO and as an employee of the firm but will remain a member of the board. She will be replaced by a Chief Restructuring Officer Richard Sebastiao of RAS Management Advisors.
The firm’s latest actions follow an aborted IPO effort at least two failed merger attempts and recently stalled investment talks.
The firm’s largest creditors include ESOP payments of over $4.4 million former CEO Lorenzo Lamadrid’s $2.3 million settlement $1.8 million due to Deloitte & Touche and $210 000 owed to KPMG according to documents filed in U.S. Bankruptcy Court in Delaware.
The firm’s revenue shrank by 17% in 2001 to about $500 million in 2001. ADL’s total headcount has shrunk from approximately 2 500 people in June 2000 to about 2 150.

2002年 7月30日
参照Consultants News Online