Date: December 27, 2001
Source: News Room
The IT Group Inc., an environmental engineering firm helping federal agencies and businesses respond to anthrax-contaminated letters, is considering bankruptcy protection or the sale of assets due to an acute cash shortage. The company, which laid off more than 400 workers in December, announced recently that recent discussions with lenders did not produce a deal to restructure its finances. As a result, the IT Group is exploring "the sale of all or a portion of the company's assets" or a Chapter 11 filing, the company said in a statement. In laying off workers Dec. 13, the company said it was considering more job cuts and facility closings and needed to address a cash shortage. The 75-year-old company is best known for its hazardous waste removal. IT Group and its subcontractors were involved in anthrax emergency support services this fall, including work performed at mail processing facilities in Trenton, N.J, and a post office and the Hart Senate Office Building in Washington. IT Group reported $699 million worth of debt at the end of the third quarter -- a 73 percent debt to equity ratio. That debt resulted from numerous acquisitions financed in the last four years. The IT Group has more than 80 facilities in the United States and more than a dozen around the world. Before the layoffs, the company had employed about 8,000 workers. More information: www.theitgroup.com.