Potential buyer delays hearing EnvisioNet awaits other offer

BANGOR – A second company interested in merging with EnvisioNet Computer Services Inc. stepped up its effort Monday, telling the technical support firm’s attorney that it wants to be given serious consideration as a buyer.

The unnamed company apparently became aware of plans by Sumaria Systems Inc. of Danvers, Mass., to submit a purchase offer Monday to a U.S. Bankruptcy Court, in addition to giving $375,000 in funding to EnvisioNet.

The second company may be presenting its plan to buy EnvisioNet to the court today, said Dennis Bailey, one of EnvisioNet’s spokesmen. Other companies, too, may be coming forward, he said.

“EnvisioNet’s an attractive company,” Bailey said. “There’s several people negotiating to be in this deal.”

With annual revenues of between $25 million and $30 million, EnvisioNet was forced to file for Chapter 11 bankruptcy protection in June because of a significant reduction of work from Microsoft, one of its major clients. At the time, the company said it had assets of more than $15 million and debts of $25.6 million, but $8 million of that debt is convertible to equity.

At its peak, EnvisioNet employed more than 2,000 people in Brunswick, Augusta and Orono. Since May, the company’s staff has been reduced to more than 1,100 because of layoffs and attrition. Almost 600 of the employees work in Orono.

EnvisioNet offers customer tech support to at least two companies, Microsoft and Dell Computers. People needing help with Microsoft’s Internet service, Microsoft Networks, or any of Dell’s products call a telephone number and may be connected with a trained EnvisioNet employee who will answer their questions.

On Monday, Bailey stopped short of calling the new offer and the possibility of other ones a bidding war among companies for EnvisioNet. But Monday’s efforts by two of four confirmed prospects make it easier for EnvisioNet to choose one it thinks will be a good fit and tell the court why it would be a suitable partner.

“They are going to have a choice here,” Bailey said.

Sumaria’s infusion of cash is part of a $1.5 million financing package EnvisioNet was seeking approval from the court to obtain. The bankruptcy court must approve any financial transaction by EnvisioNet.

The state Department of Economic and Community Development is lending $200,000 to EnvisioNet while Coastal Enterprises Inc. is considering lending $425,000. CEI’s board must approve the transaction, and it is expected to meet this week.

Also, the Finance Authority of Maine is lending $500,000 to EnvisioNet. FAME required as part of the loan that EnvisioNet secure twice that amount from other sources.

Sumaria’s plan to buy EnvisioNet and lend it money was scheduled to be presented to U.S. Bankruptcy Court Judge James Haines at 9 a.m. Monday. At that time, EnvisioNet attorney George Marcus asked for a delay to 3 p.m. Later he announced the meeting was postponed until 1 p.m. today.

“There’s some negotiations going on in the background,” said Anthony Citrano, another EnvisioNet spokesman. “From the company’s perspective, it’s worth waiting for.”

Any prospective buyer may submit a bid to EnvisioNet and the bankruptcy court, but it doesn’t mean it will be accepted, Bailey said. Haines, after hearing arguments from attorneys and reading the purchasing plans, will choose which offer is in the best interest of the company and its creditors.

Bailey and Citrano could not confirm whether Sumaria has upped its offer to buy EnvisioNet. Also, they said it is not known whether Sumaria will pull its $375,000 loan or its request to purchase EnvisioNet if it believes a better offer has been presented by another company and it does not want to top it.

Sumaria, with nine offices nationwide, provides network and software engineering, Internet solutions, information and financial management, and acquisition support.