Chimes update

Summary:

Barry Olson did NOT win the bid for Chimes’ assets as expected.

The winning bidder was Florida-based MPS Group.

Staffing suppliers will be paid for outstanding receivables (less Chimes fees) from before and after Chimes filed for bankruptcy.

Still in question, amount already paid by Chimes clients and seized by Golden Tree.

The following from the ASA:

Chimes’s Secured Creditor Waives Claim to Staffing Firm Receivables
Bankruptcy Court Names Winning Assets Bidder

Bankruptcy proceedings involving Ensemble Chimes Global, the large vendor management service that abruptly declared bankruptcy this month, took a major step toward resolution yesterday when a Los Angeles bankruptcy court named a winning bidder for Chimes’s assets and the lone secured creditor, Golden Tree Asset Management, waived any right it might have to certain unpaid receivables for services rendered by staffing firms—paving the way for staffing firms to receive payment for unpaid accounts receivable for services rendered before and after Chimes filed for bankruptcy.

The winning bidder for Chimes’s assets was MPS Group, a staffing and VMS provider headquartered in Jacksonville, FL. It had been expected that Barry Olson, the original founder and president of Chimes, would purchase the assets, but his attempted purchase fell through and MPS submitted the winning bid of approximately $8 million.

According to ASA’s outside bankruptcy counsel, who attended the hearing, Olson will continue to run the Chimes system until the asset sale closes in late January or early February.

In the meantime, and most important to staffing firms, the court’s asset sale order likely will direct Olson to collect and remit to staffing firms unpaid receivables, less Chimes’s fees under the staffing firms’ respective Chimes contracts, for services rendered before and after Chimes filed for bankruptcy. Olson will not collect any amounts previously paid by clients to Chimes and seized by Golden Tree.

ASA and several member staffing firms drafted and proposed language to be included in the court’s order and to effectuate Olson’s receipt and remittance of the receivables. This language was presented before the court at yesterday’s hearing and was unopposed. The court is expected to finalize and approve the order early next week.

Staffing firms that are owed money under Chimes agreements should consult with their counsel regarding their rights and obligations, and should consider promptly invoicing Chimes for all unpaid amounts.