Chimes back from the dead?
Not sure if any of this makes sense, but here’s an update on the Chimes situation, from the ASA:
Bankruptcy Trustee Endorses Plan To Revive VMS Firm
Intent is to pay most staffing firm claims
Ensemble Chimes Global, the large vendor management service that abruptly declared bankruptcy this month, is reportedly back in operation under a special agreement between the bankruptcy trustee and a prospective buyer. The prospective buyer has been authorized to run the business while a deal is completed to buy Chimes’s assets.
In an effort to “calm events surrounding a difficult situation,” the trustee and prospective buyer issued a joint letter Jan. 17 addressed to suppliers, customers, and “other interested parties of the former ECG organization.” The letter outlined a plan to sell Chimes’s assets and establish a process for paying staffing firms that supplied services to Chimes’s clients.
The prospective buyer is Barry Olson, the original founder and president of Chimes. According to the letter, Olson has entered into an agreement with Vedior NA to buy Chimes’s assets. The transaction is expected to be completed in 10 business days. The trustee, Howard Ehrenberg, has asked the bankruptcy court to approve a process for paying suppliers during the 10-day interim period.
In a telephone conversation with ASA today, Ehrenberg said the purpose of the process is to ensure that suppliers and employees get paid and to facilitate the continuation of the existing Chimes arrangements with clients. He said the payment proposal would be included in a motion to sell Chimes’s assets to be filed with the bankruptcy court today. Ehrenberg expects the court to approve the motion, which will be heard on Jan. 23.
Under the proposed payment process, employee time and expenses are to be entered and approved in the Chimes system. A consolidated invoice will be generated and payments made to suppliers, less the management fee, for approved hours and expenses worked and incurred after Jan. 9. Hours and expenses worked, incurred, and approved prior to Jan. 9 will be paid “as long as the hours and expenses are billed as part of the normal billing cycle after Jan. 9, 2008.” Ehrenberg explained that the latter provision is intended to include services provided before Jan. 9, even if the client has already been invoiced for those services, as long as the client hasn’t already paid the invoice. He said that amounts already paid to Chimes would have been seized by Chimes’s lender, the hedge fund Golden Tree, and a staffing firm that did not receive its payment from Chimes would therefore have to seek recovery of those amounts by filing a creditor’s claim.
Ehrenberg reiterated the statement made in the joint letter that the secured lender (Golden Tree), which holds a lien against Chimes’s assets, has assured him that it will not make any claim on future payments to suppliers except for management fees.
The letter pointedly advises clients not to enter into outside arrangements until further instructions from the bankruptcy court and states that clients should avoid paying suppliers directly. “Staying within the process spelled out in the letter provides customers with the assurance that they have honored the guidance provided by the trustee and protects them against future claims from secured creditors,” the letter concludes.
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3 Responses to “Chimes back from the dead?”
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About This Blog
Lisa Amorao is currently the Marketing Programs Manager for ATR International, a Silicon Valley-based contingent staffing firm.
Lisa has held roles in recruiting and sales before moving on to her current role in Marketing.
The opinions expressed here are her personal opinions and does not reflect those of her employer or any of its clients.
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Do you know how I may contact Barry Olson?
I am the former Sr. VP of Sales for Chimes and worked for Barry Olson for 17 years. I am now with Vedior and working in concert with Barry Olson. If you would like to contact Barry Olson please feel free to give me a call. I can be reached at 781-995-4358
Though sad for a few of the dedicated employees of CHIMES, I can say without qualification that the wresting of this company from these folks is probably the best news (for the Staffing industry) I’ve heard in many years! I know for a fact that V-ware often occurred.