Although the court advised parties to file public versions of confidential transactions, the custodian has not done so, and has withheld details of fees and expenses paid to hired consultants, a release from the group stated
Citizens for a Pro-Business Delaware wants disclosure of payments approved by Custodian Pincus which have caused a reduction in employee retirement benefits as well as an increase in health care premiums of over 13 percent for workers with families,“ the release stated.
“We are simply asking for Mr. Pincus to share where over $18 million of TransPerfect’s funds have been spent in the last 15 months,” said Chris Coffey, campaign manager of Citizens for a Pro-Business Delaware.
Custodian Robert Pincus, Partner at Skadden, Arps, Slate, Meagher & Flom LLP, has reported charging the company $1,400 per hour for his services, one of the highest rates reported in the country and three times the average rate of $450 per hour for similar services in Delaware, the group claims.Pincus has hired specialized consultants.
Pincus has hired specialized consultants, according to Citizens.
Consultants are also blamed for a data breach and noted the failure to consider a “51 percent solution” that would turn over 1 percent of the company’s stock to 50 percent shareholder Elizabeth Elting. Elting has rejected the idea.
The sale process came about when company co-founders Elting and Philip Shawe could not agree on a buyout.
“Employees who are already fearful of losing their jobs are now spending more on benefits, while the custodian and his hidden consultants are raking in millions,” said Chris Coffey.
The organization is working to pass a Senate bill that would mandate a three-year waiting period when forcing the sale of a privately-held company.
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, the release stated.
For more information on Citizens for a Pro-Business Delaware visit DelawareForBusiness.org.