Ciber Bankruptcy Settlement Approval Sought


Ciber filed with the U.S. Bankruptcy Court a motion to approve a compromise and enter into a settlement and release agreement by and among Ciber, the State of Washington and the Washington State Board for Community & Technical Colleges.

The motion notes, “Ciber and the State, acting through SBCTC, are parties to the SBCTC Contract, which sets forth the Parties’ rights and obligations with respect to, among other things, the implementation by Ciber of an integrated enterprise resource planning system for SBCTC and its 34 community and technical colleges. On April 21, 2017, Ciber filed a complaint against Washington in an adversary proceeding before this Court alleging, among other things, breach of such contract by Washington, and seeking payment of $13 million that Ciber alleges to be due and owing under the SBCTC Contract.”

In addition, “Under the terms of the SBCTC Contract, SBCTC agreed to pay Ciber a fee of $43,950,000 for its services related to ctcLink. As discussed in greater detail in the Complaint, SBCTC has not paid the final installment of $2,692,333 for the first roll-out wave, which Ciber alleges is due and owing. Moreover, Ciber alleges that an additional $10.4 million remains due to Ciber for the completion of the second and third roll-out waves, which have not yet occurred.”

The Court scheduled a July 13, 2017 hearing to consider the settlement, with objections due by July 10, 2017.

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