MarchFirst Files for Chapter 11
The Chicago firm filed for Chapter 11 protection in federal bankruptcy court in Delaware. The measure allows the company to pay creditors even as its stakeholders retain control.
"The company also filed a Chapter 11 plan that essentially 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," a marchFirst statement said. "However, at this time, it is unlikely that any proceeds will remain for distribution to holders of the company's common stock."
While the U.S. subsidiaries and affiliates are part of the filing, marchFirst's European interests were not included.
MarchFirst recently changed senior management to keep the formerly high-flying firm afloat. It also cut staff and sold assets.
The agency said it would not file a 10-K form with the Securities and Exchange Commission for fiscal 2000. It expects its stock to be delisted from the Nasdaq.