Monitor looks to use cash collateral to pay post-closing obligations

By Caroline Salls

Pittsburgh, Dec. 18 - Monitor Co. Group LP requested court approval to use cash collateral to enable it to fulfill post-closing asset sale obligations, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Monitor said its asset purchase agreement with stalking horse bidder Deloitte Consulting LLP requires the company to continue to operate for up to six months under a transition services agreement after the sale closes.

The company said it expects 50 or 60 employees to be retained for some or all of that six-month period.

In addition, Monitor said it will defer rejection of various contracts and continue to make payments under those contracts.

During the transition period, the company said it would need to wind down its affairs, which will include paying administrative costs and preparing and seeking confirmation of a liquidation plan.

The auction is currently scheduled for Jan. 9 and the asset sale hearing is scheduled for Jan. 11.

A hearing on the cash collateral use is also scheduled for Jan. 11.

Monitor, a Cambridge, Mass.-based strategy consulting firm filed for bankruptcy on Nov. 7. Its Chapter 11 case number is 12-13042.

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