SOURCE: LECG Corporation

LECG Corporation

February 18, 2011 08:30 ET

LECG Provides an Update on Strategic Alternatives

DEVON, PA--(Marketwire - February 18, 2011) - Global business advisory services leader LECG Corporation (NASDAQ: XPRT) today provided an update on its efforts with respect to exploration of strategic alternatives. 

On February 7, 2011, the Company announced that it had received a non-binding indication of interest from an undisclosed company with a view toward entering into a definitive acquisition transaction for the entire firm. The Company is disclosing today that FTI Consulting, Inc. provided the non-binding indication of interest. The negotiations with this party are now focused on the possible acquisition of several specific practice groups within LECG and not an acquisition of the entire firm. LECG believes this alternative, whether with the identified party or one or more other parties, may be the most viable path for the Company to raise capital to address current liquidity concerns. 

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. 

The Company continues to work closely with its current lenders. The Company's term credit facility matures on March 31, 2011 and approximately $27.8 million in principal is outstanding under the facility. Absent a strategic transaction, or other financing alternative, the Company will not have sufficient cash resources to repay amounts outstanding under the facility. 

There is no assurance that the Company will enter into a binding acquisition agreement with any party or that the terms of such agreement will meet the Company's current expectations. If the Company is not able to enter into a binding acquisition agreement to sell certain of its practice groups for sufficient funds, it will need to consider other restructuring and debt resolution alternatives, including a possible liquidation. The Company disclaims any obligation to update this disclosure and does not intend to make any further public disclosures concerning any transaction until a binding acquisition agreement is signed or other material decision is made by its board of directors.

About LECG

LECG is a global litigation; economics; consulting and business advisory; and governance, assurance, and tax expert services firm with approximately 1100 employees in 33 offices around the world. We provide independent expert testimony, original authoritative studies, strategic financial advisory services, and innovative business consulting solutions to Fortune Global 500 corporations, middle market firms, AmLaw 100 law firms, and government agencies worldwide. LECG's highly credentialed experts and professional staff conduct economic and financial analyses and perform independent verification to provide objective opinions and advice that inform legislative, judicial, regulatory, and business decision makers. LECG experts are renowned academics, former senior government officials, experienced industry leaders, and seasoned consultants. Attest services are provided through LECG Partners, LLP, pursuant to an alternative practice structure. LECG is not a licensed CPA firm.

Certain matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties, including but not limited to the risks and uncertainties about whether the Company is able to refinance the amounts outstanding under its term credit facility, whether the lenders under the term credit facility will declare an event of default under the facility when it matures on March 31, 2011 and the ramifications of such event of default, and whether the Company will enter into a binding acquisition agreement and close the transaction contemplated in this release and the terms of such agreement. The actual results of LECG could differ from those statements. In addition to the risks and uncertainties identified above, reference is also made to other risks and uncertainties detailed in LECG quarterly report on Form 10-Q for the quarter ended September 30, 2010 and any other reports filed by LECG with the Securities and Exchange Commission. LECG cautions that the foregoing risks and uncertainties are not exclusive.

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