EYP, an interdisciplinary design firm specializing in the higher education, healthcare, government and science and technology sectors, reached an agreement through which Ault Alliance would serve as a stalking horse for the purchase of substantially all of the assets of the company for $67.7 million, plus the assumption of significant liabilities associated with on-going operations as part of a going-concern sale of the company.

Under the terms of the stalking horse agreement, Ault will retain all EYP’s well-regarded professional staff and acquire substantially all the company’s assets including all its customer contracts. The agreement allows the company, under its existing name and brand, to continue its history of growth and fulfill its business strategy for expansion and will provide long-term financial strength to augment its strong operational performance over the last few years.

To achieve its financial objectives and facilitate the sale, EYP and certain affiliates voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This process will allow for a prompt sale of the company, while allowing it to maintain full operations during the sale process. As a result of this process, the company will be able to address certain non-operating balance sheet liabilities and emerge as a stronger and more competitive force in the marketplace. The company expects to complete the sale process in the next two months.

“This is a positive step forward for the business, as well as for our employees, clients, sub-consultants and vendors, because it allows us to continue delivering memorable designs that enhance people’s lives and communities, while significantly reducing non-operating liabilities and allowing us to achieve our planned growth,” Kefalari Mason, interim CEO of EYP, said. “EYP remains committed to our staff, to our partnerships with our clients and consultants and to designing meaningful spaces.”

EYP intends to continue normal operations throughout this process, ensuring its continued ability to deliver projects and engage with clients. To this end, the company has secured a commitment from Ault for new debtor-in-possession financing to ensure continuity of operations through the sale process. The company also has filed motions that once approved by the bankruptcy court, will allow the business to continue employee wages, medical benefits and other programs without interruption, and to pay sub-consultants and vendors on a timely basis for all goods and services delivered during the upcoming process.

“EYP is a good candidate to use the protections that a Chapter 11 process provides. Our business is as strong as it has ever been and the advantages for the company are that it allows us to continue doing the work we love while quickly moving through a sale process that further strengthens our financial position, allowing us to shape a future that matches our success over the last few years,” Mason said.

EYP is advised in this transaction by Carl Marks Advisors.