A group representing TransPerfect employees warned that the process is selling the company is accelerating.
After signs that an effort to mediate a dispute over control of the company between owners Philip Shawe and Elizabeth Elting has failed, Citizens for a Pro-Business Delaware noted that the Chancery-Court appointed custodian is continuing the auction process this week and adding additional consultants that are paid above market rate. “
The group won a small victory when a bill before the Delaware General Assembly that would create a three-year waiting period for the sale of the company was voted out of committee.
“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 (Robert) Pincus has sped up the auction, behind closed doors and has hired yet one more highly paid consultant to the auction team.”
Meanwhile, the custodian added financial giant Credit Suisse, to the auction team.
The costs force TransPerfect to spend more money, in addition to the 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, a release from Citizens stated.
“We demand that the full legislature vote on this important bill to save TransPerfect,” said 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 was formed in April of 2016 to focus on raising awareness with Delaware residents, elected officials, and other stakeholders about the sale.