Chrysalis Management Manages Sale of IT Staffing firm Cloudeeva, Inc. to First Tek Inc. in a 363 Auction for Chapter 11 Trustee.

April 10, 2015

Chrysalis Management served as advisor to the Chapter 11 trustee of Cloudeeva, Inc., providing interim management of operations and management of the successful sale of the company to First Tek Inc. – an IT staffing firm headquartered in Piscataway, NJ – through a 363 sale process and auction.

Cloudeeva Inc., a mid-sized IT staffing firm based in East Windsor, NJ, filed for bankruptcy in July 2014 after a shareholder dispute, and Chrysalis was appointed by the Chapter 11 Trustee December 2014 to manage the operations and bankruptcy exit.

During the initial analysis, significant fraud was discovered, key managers resigned or were terminated, and significant operational, litigation and analytical support was required to ensure ongoing operational viability and preservation of asset values.

Chrysalis maintained revenue and profit at comparable levels to when it assumed responsibility, maintained staff and consultant levels, and identified and managed the identification and re-integration of approximately $500k in fraudulently transferred assets. Cloudeeva was sold for $7.55M after initial bids indicated highest value of $5M.

About Chrysalis Management

Chrysalis Management, LLC is an advisory firm that provides top-tier financial and operational support for small and mid-sized organizations at critical inflection points. The firm has deep expertise and a long track record of success in evaluating and improving organizations, with specific expertise in highly complex and distressed situations. Chrysalis partners with clients for the assessment, development and implementation of action plans designed to deliver fast, measurable business improvement. Working to accelerate change on both the revenue and cost sides of the business makes Chrysalis a valued, action-oriented partner in both consulting and interim management capacities. Chrysalis offers four main services to its clients: assessment and planning, financial management and capital sourcing, operational improvement and growth, and exit and succession execution.

Chrysalis is has offices in Boston and New York. For more information or to partner with Chrysalis, please contact Emily Lord: elord@chrysalismgmt.com.

 

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