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The deal is expected to close by Jan. 31. MPS will pay $8,075,000 for ECG's assets.
ECG filed for bankruptcy the day after the bankruptcy filing of its parent company, Los Angeles-based Axium International Inc. The sudden filing jolted the staffing industry, leaving customers wondering what to do next and staffing firms concerned about payments. One ECG client, Comsys IT Partners (NASD: CITP), warned investors on Thursday it was analyzing the collectibility of $1.0 million related to monies for work in progress and Comsys funds ECG was holding at the time of its bankruptcy. Spherion Corp. (NYSE: SFN) said Tuesday a large VMS that filed bankruptcy held $1 million in funds owed Spherion that may not be fully collectible.