The American company EYP Architecture + Engineering has filed for bankruptcy due to pressure from debt securities. The company, based in Albany, New York, has 11 offices across the United States and employs 470 people. The company filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware over $149 million in debt.
To deal with its debt burden, EYP agreed to a deal to sell itself to Ault Alliance Inc for $68 million. Ault is a subsidiary of BitNilea cryptocurrency-focused company that owns and operates its own data center for bitcoin mining and provides products focused on disruptive technologies.
Yahoo Finance Reports that Ault will make a job offer to all current EYP employees, and that the company’s ongoing projects should not be disrupted by the sale, which is expected to be completed by June 2022.
According to EYP, the decision to file for bankruptcy was unrelated to the pressures of the COVID-19 pandemic, but rather was the result of long-standing complications with its debts and lawsuits filed by former employees.
According to Reuters, a lawsuit filed by employees accuses former EYP shareholder Long Point Capital of deceiving employees by selling their stake in the company to an ESOP (employee stock ownership plan) in exchange for tickets without value. EYP is not listed as a defendant in the case, but has “significant” indemnification obligations to former directors who are defendants.
EYP has been featured in several Archinect stories in recent years, including numerous awards. In 2015, the company was listed among the top 50 companies in the United States by Architect magazineincluding the highest score for sustainability, while in 2017 the company received first prize in the Office Building category for the Rethinking the Future Awards.
Last year, EYP was one of 19 companies to participate in the NOMA Foundation Fellowship, which saw 24 architecture students matched with leading architecture firms for research and future employment. potential.