Birdsall Services Group, Inc., Eatontown, N.J., furloughed 300 employees on April 10 after a federal judge issued a temporary restraining order in favor of the State of New Jersey's efforts to block the embattled engineering firm's bankruptcy filing. Birdsall is also in talks with a potential buyer, according to court filings. Birdsall and seven of its former executives were indicted on corruption charges on March 26, and the firm filed for bankruptcy on March 29.
The temporary restraining order, issued by U.S. District Court Judge Michael Shipp, blocks Birdsall from using cash collateral for salaries and other expenses, says a Birdsall spokesman. Birdsall immediately appealed the decision but the judge declined to hear it, he says. However, the judge has set an April 15 hearing date, he says.