Remaining Axium assets sold
EmptyThe remaining assets of bankrupt Axium International's payroll business were sold at auction Thursday to employee-owned payroll and production management business Entertainment Partners for $7.05 million.
Included in the acquisition are software assets and the servers housing the assets. EP did not acquire accounting or payroll data but made arrangements to assist the trustee's delivery of confidential information to the appropriate parties.
Court appointed trustee Howard Ehrenberg will be generating 2007 W2s and responding to requests for confidential data. "We are well on our way to getting it finished," Ehrenberg said. "We have already finished preparation for about 50,000. There's about 120,000 W2s altogether."
Said EP president and CEO Markham L. Goldstein: "In the interests of preserving the integrity of the historical and current data for our clients and the industry, we have purchased certain of the assets and assumed none of the liabilities of Axium International through the bankruptcy proceedings. ... It was important for us to let the industry know that we are committed to helping everyone get past this crisis. These assets will go a long way in helping us to establish the continuity and stability our clients have come to expect from Entertainment Partners."
Axium filed for liquidation under Chapter 7 of the U.S. Bankruptcy Code earlier this month.
Ensemble Chimes Global, the staffing arm of Axium, was sold at auction Jan. 23 to MPS Group Inc. for $8.1 million.
On Jan. 15, GoldenTree Asset Management -- the primary lender to Axium International--and GTAM Special Reality filed suit against Axium's former chairman/CEO John Visconti, vice chair/COO Ronald Garber, and others, claiming they looted the assets of Axium to fund their "extravagant lifestyles." In papers filed in U.S. District Court, GoldenTree claims at least $87.5 million in damages.
There were five bidders at Thursday's auction. The sale is expected to close within 10 days.