quick recap of recent events:
From Feb 7th: Received acquisition offer of $1 per share
Separately, the Company received a non-binding indication of interest with a view toward entering into a definitive acquisition transaction for the entire firm.
The non-binding indication of interest sets the enterprise value of LECG at $104 million, on a cash free, debt free basis. This implies a value of up to $1 for each outstanding share of common stock after repayment of the Company's existing debt and redemption of the Company's Series A Convertible Redeemable Preferred Stock.
Feb 18th: FTI confirms in talks to acquire some practices but not the whole firm
Today confirmed that it is in discussions with LECG Corporation (Nasdaq: XPRT) on the possible acquisition of several specific practice groups within LECG but not an acquisition of the entire firm.
Also on Feb 18th: LECG states they are still analyzing other restructuring possibilities
While the Company is pursuing discussions with the identified party, the Company, together with its advisor William Blair & Company and counsel, is also analyzing other restructuring possibilities.
Feb 28th d-day: FTI acquires 2 practices from LECG and states from this transaction shareholders will not see any value
LECG will initially use the majority of the proceeds from practice group transitions to repay the $27.8 million in principal outstanding under its credit facility. The Company does not believe there will be any value remaining for the common stockholders after taking into account the expected net sale values of these transactions in the aggregate, and the use of the proceeds to fund payments to the Company's lenders and unsecured creditors. Contractually, the remaining value available to equity holders, if any, would be first allocated to the Company's outstanding preferred stock.
March 1st: FTI is still in talks to acquire more practices from the company
FTI Consulting, Inc. also confirmed it continues to evaluate the possible acquisition of several additional practice groups from LECG.
Ongoing: speculative bounce play, any buying momo, news on additional acquisitions, or any deals with its lenders will spark a nice rally. Its certainly a risky play though
