EYP strengthens its position for continued growth

ALBANY, NY–(BUSINESS WIRE)–EYP (“the Company”), an interdisciplinary design firm specializing in the higher education, healthcare, government, and science and technology sectors, today announced that it has entered into a agreement whereby Ault Alliance, Inc. (“Ault”), would serve as the workhorse to purchase substantially all of its assets from the Company for $67.7 million, plus the assumption of significant liabilities associated with ongoing operations as part of a continuing sale of the Company.

Under the terms of the stalking horse agreement, Ault will retain all of EYP’s reputable professional staff and acquire substantially all of the company’s assets, including all of its customer contracts. The agreement enables the Company, under its existing name and brand, to continue its growth history and achieve its expansion business strategy and will provide long-term financial strength to augment its strong operational performance over the past several years. .

To achieve its financial objectives and facilitate the sale, EYP and certain affiliates have voluntarily filed for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. This process will allow for a quick 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 settle certain non-operating balance sheet liabilities and become a stronger and more competitive force in the market. The Company expects to complete the sale process within the next two months.

“This is a positive step forward for the company, as well as our employees, customers, sub-consultants and suppliers, as it allows us to continue to deliver memorable designs that improve the lives of people and communities. , while significantly reducing non-operating liabilities and enabling us to achieve our planned growth,” said interim CEO Kefalari Mason. “EYP remains committed to our people, our partnerships with our clients and consultants, and the design of meaningful spaces.

EYP intends to continue normal operations throughout this process, ensuring its continued ability to deliver projects and engage with customers. To this end, the Company has obtained a commitment from Ault for new debtor-in-possession financing to ensure continuity of operations throughout the sale process. The company has also filed petitions that, when approved by the bankruptcy court, will allow the company to maintain employee salaries, medical benefits and other programs without disruption, and pay sub-consultants and suppliers in a timely manner for all goods and services delivered. in the upcoming process.

“EYP is a good candidate to utilize the protections provided by a Chapter 11 process. Our business is stronger than it has ever been and the benefits to society are that it allows us to continue to do the work that we love while moving quickly through a sale process that further strengthens our financial position, allowing us to shape a future that matches our success over the past few years,” Mason said.

EYP is advised in this transaction by Carl Marks Advisors.

About the YEP

EYP celebrates 50 years as a people-focused, interdisciplinary design firm specializing in higher education, healthcare, government, and science and technology. From architecture, planning and interiors to engineering and building performance, we begin every project by asking “What is possible?

Striving to create an environment of partnership and trust, we seek to meet your needs and go above and beyond. We have built long-term relationships based on listening and bringing intuition and intellect to a creative process focused on discovering the possible in your project.

Founded in 1972, we have grown steadily through new clients, strategic mergers and acquisitions, expanding our expertise and geographic reach to better serve our clients. Our integrated teams deliver planning and design, high performance engineering, environmental graphics, preservation and modernization, interiors and workplaces, and rapid response projects to meet your pressing challenges. http://eypae.com/

Forward-looking statements

This press release contains forward-looking statements regarding EYP, its subsidiaries and its businesses. These statements are based on the current expectations of management of each entity. The words “anticipate”, “expect”, “believe”, “may”, “should”, “estimate”, “project”, “outlook”, “plan” or similar words are used to identify this information. prospective. The forward-looking events and circumstances discussed in this release may not occur and may differ materially due to known and unknown risk factors and uncertainties affecting the Company, including risks relating to the architecture and design industry. , the economy and other events and factors. No forward-looking statement can be guaranteed. These forward-looking statements speak only as of the date they are made, and EYP and its affiliates undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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