Thomas Group, Inc. (TGIS: OTC Link) | Thomas Group Announces Cessation of Business Operations

Thomas Group Announces Cessation of Business Operations

Mar 15, 2012

OTC Disclosure News Service

Irving, TX –

 March 15, 2012  – Thomas Group, Inc. (OTC: TGIS.PK), a global change management and operations improvement consulting firm, today announced that it has ceased business operations. 

In order to best preserve the value of the Company’s assets for the benefit of its creditors and stockholders, on March 5, 2012, the Company entered into an Agreement to License Intangible Property with Ops Rules Partners, LLC, (“Ops”) pursuant to which the Company agreed to use its best efforts to transfer all existing client contracts and existing proposals for services as well as to license certain selected confidential information and materials to Ops until December 31, 2013, in exchange for a royalty on revenue received by Ops as a result of such contracts and proposals as well as its use of such information and materials.  Further, in order to maximize the opportunity for Ops to generate revenue from the materials and information and thus to pay applicable royalties to the Company, the agreement with Ops authorized it to hire certain employees of the Company, including Mr. Michael N. Romeri, who resigned his positions as President and Chief Executive Officer and as a director of the Company on March 5, 2012 and now serves as Managing Partner of Ops.  Mr. Romeri and the other Company employees who resigned to join Ops Rules Partners did not receive any severance payments from the Company.  The Company has terminated its remaining employees.

As previously publicly disclosed, the Company has for some time tried to generate new revenue while also pursuing additional funding as well as other strategic alternatives.  The Company has not been able to generate the needed additional revenue and has not found a viable strategic alternative.  Given the Company’s financial position and prospects, particularly in light of its low available cash balance, a recent lawsuit alleging breach of an equipment lease, and the Company’s other outstanding liabilities, the Board of Directors of the Company determined that it was in the best interest of the Company, its creditors and stockholders to cease operations. 

The Agreement with Ops did not include trade names, trademarks, websites or other tangible and intangible assets of the Company.  The Company now is winding down its operations and the Board of Directors has authorized filing bankruptcy under Chapter 7 of the U.S. Bankruptcy Code, if necessary.

As previously publicly disclosed, the Company filed a Form 15 with the Securities and Exchange Commission on January 3, 2012, to deregister its common stock under Section 12(g) of the Securities Exchange Act of 1934. 

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/TGIS/news?id=43726

Leave a Reply

WP2Social Auto Publish Powered By : XYZScripts.com
Bunk Beds