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Clarification: Ensemble Chimes Global

January 13, 2010
Staffing Industry Analysts North American Daily News

A story regarding 750 lawsuits filed in the Ensemble Chimes Global case should have mentioned that the suits were filed in both the ECG and Axium International Inc. bankruptcy cases -- not just ECG.

Axium, which also provided payroll services to the entertainment industry, was the parent company of ECG. Axium filed for bankruptcy in January 2008 shortly before ECG.

Some staffing firms are among the defendants in the 750 lawsuits that stem from "inquiries/demand letters for preference" mailed last year. The letters sought monies paid out by ECG and Axium back to 90 days before it filed for bankruptcy. Under bankruptcy law, those payments may have to be returned.

The 750 lawsuits were filed against companies that didn't respond to the demand letters for preference or did not settle.

ECG at one time operated the largest vendor management system; the VMS was sold in bankruptcy court.