Embattled Internet consultancy MarchFirst, the company which folded operations in Australia last month, has filed for bankruptcy in the US, capping off months of losses.
In a statement, MarchFirst said the filing is expected to provide the company with time to complete the liquidation of its domestic business units and core assets.
Just weeks ago, it sold some of its assets to Divine, including the Internet consultant's Central US operations, hosting business, and SAP implementation practice.
MarchFirst also said it completed that sale (pending regulatory approval) for US$6.25 million at closing, an additional US$29.75 million note payable over not more than five years and up to an additional US$16 million payable over five years, contingent on the units' future performance.
Divine earlier this month also discussed plans to acquire MarchFirst's HostOne hosting operation.
However, under the bankruptcy filing, MarchFirst European business units were not included. It is in active discussions for the sale of its foreign business units and they will continue to operate as usual.
MarchFirst said in a statement that the bankruptcy filing "provides for distribution of any cash proceeds received by the company to creditors and if creditors have been fully paid, to holders of the company's preferred stock and then holders of its common stock. However, at this time it is unlikely that any proceeds will remain for distribution to holders of the company's common stock."
