GP Strategies announces contract termination with foreign oil and gas client
In its Q3 earnings press release, GP Strategies disclosed a $2.6M loss on a contract with a foreign oil and gas client due to a contract performance dispute. The contract has subsequently been terminated. As of September 30, the company had approximately $3.8M of net receivables from this client. The company submitted a termination cost invoice to the client for approximately $10M under the terms of the contract which includes work performed through the date of termination plus any committed costs as of the termination date. The company is currently evaluating the recoverability of its receivable and the impact on its 4Q17 financial results. In connection with this contract termination, the company estimates it will incur expenses including termination costs of approximately $2.5M. In addition, the company could incur up to an additional $1M in costs including costs that would only be incurred upon receipt of payments upon successful settlement of the termination invoice.