Court-Appointed Custodian Accelerates Auction Process of TransPerfect After SB53 Passes Out of Senate Committee

DOVER, Del., July 13, 2017 /PRNewswire/ -- Citizens for a Pro-Business Delaware (CPBD) celebrates the success of SB53 passing out of the Senate Elections and Government Affairs Committee but remains vigilant in the fight to save 4,000 jobs and pass the legislation. The organization will increase advocacy efforts, working towards bill passage when the legislature reconvenes in January 2018.  SB53 would require a three-year waiting period before the Court of Chancery can order the sale of a private company, such as TransPerfect.  As CPBD celebrates the bill's momentum when the legislature adjourned last month, Custodian Pincus, Partner at Skadden, Arps, Slate, Meagher & Flom LLP, has felt the pressure. The Custodian has not only accelerated the auction of the company behind closed doors, but has also added another highly paid consultant, Credit Suisse, to the auction team. This decision forces TransPerfect to spend more unnecessary money, in addition to the exorbitant custodian costs. Rather than the average Delaware hourly fee of $400, Pincus charges $1,425 an hour, resulting in $4 million already spent by TransPerfect.

"We applaud the Elections and Government Affairs Committee for listening to their constituents' concerns and passing the TransPerfect bill out of committee this past legislative session," said Chris Coffey, Campaign Manager for Citizens for a Pro-Business Delaware. "Delaware residents do not want to see TransPerfect sold out from under the owners and employees who have made it a global success. While we work to protect Delaware's incorporation industry, Custodian Pincus has sped up the auction, behind closed doors and has hired yet one more highly paid consultant to the auction team."

Although the bill will not be voted on until 2018, Custodian Pincus is continuing the auction process this week and adding additional consultants that are paid above market rate. The court has also ordered mediation in response to Shirley Shawe's offer to sacrifice her vote in the boardroom and end the deadlock that caused the initial lawsuit. However, Custodian Pincus charges on in the auction of the successful company.

"We demand that the full legislature vote on this important bill to save TransPerfect," said Chris Coffey. "The Custodian's self-serving motives are on display as he continues to ignore Delawareans working to save this company and we will not stop until over 4,000 employees feel safe again."

Citizens for a Pro-Business Delaware is a group made up of more than 2,200 members including employees of the global translation services company TransPerfect as well as concerned Delaware residents, business executives and others. It formed in April of 2016 to focus on raising awareness with Delaware residents, elected officials, and other stakeholders about these issues.

For more information on Citizens for a Pro-Business Delaware visit DelawareForBusiness.org.

Contact: Mary Urban, [email protected]

SOURCE Citizens for a Pro-Business Delaware

Related Links

http://DelawareForBusiness.org