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Butler International Inc. (OTCBB: BUTL.PK), an engineering services and staffing firm, announced it struck a deal Monday to be acquired by Butler America LLC, a company affiliated with D. Stephen Sorensen, chairman and CEO of Select Staffing. It also filed for Chapter 11 bankruptcy protection.
In its bankruptcy filing, Butler International listed assets of $96.4 million, representing book value and not necessarily market value, and total debts of $75.6 million as of March.
Sorensen's company would acquire Butler International for $27.0 million in cash under the deal.
"We are very pleased to have reached this important step in resolving the future of Butler International," CEO Ronald Uyematsu said. "In these challenging economic conditions, we believe that a transaction based on the agreement will enable our core business to continue and strengthen the financial condition of our business. We will need the continued support of all of our lenders and other stakeholders as we move forward with the challenges of closing this or any alternative transaction."
The sale is subject to higher offers. Last month the company had announced it was negotiating to be acquired by Cleveland-based NESCO Inc.
In March, Butler International announced it replaced its chairman and CEO Edward Kopko with Uyematsu as CEO and Thomas Comeau as president, and said it had reached an agreement with its lender regarding a default on a loan, according to a filing with the U.S. Securities and Exchange Commission. The company also announced in March that Caterpillar Inc. ended a master consulting agreement with it for staffing.