Ciber, Inc., a global information technology consulting, services and outsourcing company, announced that it and certain U.S. subsidiaries filed voluntary petitions seeking relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in the District of Delaware. This initiates a process intended to preserve value and accommodate an orderly going-concern sale of the Company's business operations.

Ciber has a commitment for up to $41 million in debtor-in-possession (DIP) financing, subject to bankruptcy court approval, which is expected to provide the company with liquidity to maintain its U.S. operations in the ordinary course of business during the Chapter 11 process. According to court documents, Wells Fargo Bank served as Administrative Agent for the DIP lenders.

Prior to the Chapter 11 filing, and subject to Bankruptcy Court approval, Ciber entered into a "stalking horse" Purchase Agreement with Capgemini to acquire substantially all of the assets of the company in North America and India in a sale process under Section 363 of the Bankruptcy Code that will be subject to higher and better offers. Through this proposed transaction Ciber's clients will benefit from the high levels of service Capgemini is known to provide its clients. Ciber's employees, who bring with them a wide range of highly valued skills and expertise, will benefit from joining a global leader in its markets.

In accordance with the sale process under Section 363 of the Bankruptcy Code, notice of the proposed sale to Capgemini will be given to third parties and competing bids will be solicited. Ciber will manage the bidding process and evaluate the bids, in consultation with independent professional advisors and as overseen by the Bankruptcy Court.

President and Chief Executive Officer Michael Boustridge commented, "With the advice and support of outside advisors, we've explored multiple paths, including selling the Company outside the bankruptcy process, selling certain assets of the Company, and other transactions to restructure the balance sheet or raise capital, while also focusing on attempting to improve sales, reduce costs, and exit underperforming operations. After careful consideration of the alternatives available to maximize the value of the Company, it's become clear that the best path forward for the Company, its employees, customers and stakeholders is to accomplish a sale through the bankruptcy process."

Boustridge continued, "We are keenly focused on minimizing disruption to our customers, partners, and employees during the Chapter 11 process. The proposed sale will preserve jobs, ensure customers can benefit from continuity of services, and enable a smooth transition of Ciber's U.S. business to Capgemini or any other bidder providing a higher and better offer in accordance with Court approved procedures." 

In order to help facilitate the Company's financial restructuring, Ciber's Board of Directors has named Jon Goulding as Chief Restructuring Officer. Goulding is a noted financial restructuring expert and a Managing Director of Alvarez and Marsal, a leading restructuring firm.