April 24, 2018

Bankruptcy Filing for divine; Little Money Left for Libraries

By LJ Staff

As anticipated, the troubled divine inc. has filed for bankruptcy. However, as the Chicago Sun-Times reported, the February 25 filing was accompanied by the announcement that a private equity firm, GTCR Golder Rauner LLC, would like to acquire divine’s consulting, software, and web hosting businesses. The offer, however, is $50 million-which suggests divine would have very little money for libraries and publishers stiffed by its RoweCom subsidiary. divine announced that it has some $25 million in unrestricted cash, enough “to operate the business as various options are considered to maximize value to the creditors.” About $65 million in subscriptions have not been paid for, and creditors have alleged that divine took $73 million from RoweCom. divine, in turn, has said that RoweCom owes it $60 million.