Design Firm Page Buys Assets of Bankrupt EYP Group
Design Firm Page Buys Assets of Bankrupt EYP Group
Abstract
The $70.4-million acquisition substantially increases the size of Page, previously known as Page Southerland Page, adding EYP Group's 500 employees to the parent's 800. Based in Washington, D.C.,Page submitted a successful bid for EYP Group's assets June 22 and opened a $50-million revolving line of credit from Bank of America to help finance the acquisition, bankruptcy court documents show. EYP Group, based in Albany, N.Y., filed in April for protection from its creditors in federal bankruptcy court in Delaware. Soon after its ESOP, which replaced financing provided in 2011 by a private equity investor, EYP Group ran into financial trouble. At about the same time or shortly after the ESOP closing, the firm became entangled in a New York State scandal known as the "Buffalo Billions."Former CEO and EYP Founder Tom Birdsey became a potential witness in a contract-steering probe involving associates of former New York Gov. Andrew Cuomo and Alain Kaloyeros, former president of SUNY Polytechnic University. EYP Group, which was not charged with wrongdoing, designed a new building at the university in Albany and leased space in it. EYP Group collectively owed $139 million to 111 note holders, including many who are former managers and employees who either held stock or accepted promissory notes.
