Consulting firm Scient files for bankruptcy

New York-based Web consulting firm Scient Inc. has filed for Chapter 11 bankruptcy and has agreed to sell certain assets to SBI and Co.

Under the agreement, Salt Lake City-based SBI will provide Scient with a $4.9 million loan to help the company continue operating until the sale is finalized, according to SBI spokesman Michael Adams.

The deal also calls for SBI, a professional services firm, to hire some of Scient's employees.

Adams declined to say how much SBI had offered Scient for its assets.

In a statement, Scient and SBI said they expect the sale to be approved by the U.S. Bankruptcy Court in New York.

Adams said the two companies will jointly present the plan to the court. However, Adams said the sale, which could take 60 to 75 days to complete, could still be subject to other offers. "But we don't expect that to happen," he said.

Adams said the deal would allow SBI to increase revenue and technology partners.

In the statement, Scient said its president and CEO, Christopher Formant, was stepping down but would remain a member of its board. Stephen Mucchetti, vice chairman of the board, is to succeed Formant.

Scient officials couldn't be reached for comment.


Copyright © 2002 IDG Communications, Inc.

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