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jerryking : restructurings   35

Toronto investment bank Infor prepares for wave of corporate credit restructurings -
February 17, 2019 | The Globe and Mail | by ANDREW WILLIS.

Infor was founded in 2015 and focuses on providing merger and acquisition and financing advice to growth companies in the mining, financial services, cannabis and technology sectors. The employee-owned firm is home to two dozen bankers and has advised on 1,800 transactions valued at $250-billion. Chief executive officer Neil Selfe said the decision to move into restructuring reflects a view that a downturn is overdue in credit markets.

“We believe the current economy cycle, bolstered by extended periods of low interest rates and excess leverage, is in its final stages and a substantial corporate restructuring pandemic is nearing,” Mr. Selfe said. Infor is well positioned to advise distressed borrowers, he said, because “as the largest providers of debt, Canadian banks are conflicted in helping corporations navigate this environment.”
Andrew_Willis  Bay_Street  bow_wave  distressed_debt  hiring  Infor  investment_banking  preparation  restructurings 
february 2019 by jerryking
Inside the brutal transformation of Tim Hortons - The Globe and Mail

Since taking over the iconic chain in 2014, its new Brazilian owner, 3G Capital, has purged head office, slashed costs and squeezed suppliers. Shareholders are happy, but is 3G tearing the heart out of Timmy’s?.....3G is regarded as ultra-disciplined owners who are sticking to the same playbook they have followed at companies including Burger King, Anheuser-Busch, Kraft Foods and Heinz: massive layoffs, replacing legacy managers with hungry youngsters and, above all, a fanatical devotion to financial benchmarks and cost-cutting. (It remains to be seen whether this will also be the approach for RBI’s latest acquisition, Popeyes Louisiana Kitchen.)....Will 3G's analytics-driven overhaul of Tim Hortons—using the same template the private equity firm’s founders have deployed at railroads, brewers and food makers—succeed in the long run, or is it in danger of cutting the heart out of a Canadian icon? ......Suppliers are also feeling the squeeze. From the get-go, RBI made it clear it would be reviewing vendor relationships. And the company pushed for better terms, including extensions on bill payments to as much as 120 days from 30 days or less. Maple Leaf Foods, a major partner that supplied meat to Tim Hortons, declined to accept the new terms, and walked away....
Former employees also say RBI has cut back on product research and development spending at Tim Hortons, offloading some of that work to suppliers. That’s not uncommon in the fast-food world, but it can be risky. “Suppliers can do a great job with innovating and R&D, but you’re limited to what the supplier is trying to develop,” ......3G has never encountered a brand quite like Tim Hortons. It isn’t just another coffee company. It is a Canadian destination, an integral part of many Canadians’ day and a brand that defines us, to some degree, around the world.......“The risk, in looking at Tim Hortons through the lens of efficiency alone, is to miss the greatest value of the asset, and that is the Tim’s brand and its deep connection to the fabric of the country,” says Joe Jackman, founder of strategic retail consultant Jackman Reinvents, whose clients have included Old Navy, Hertz, Rexall and FreshCo. “You can’t cost-cut your way to retail nirvana.”
3G_Capital  brands  Canadiana  coffee  community_support  cost-cutting  cultural_touchpoints  data_driven  downsizing  efficiencies  fast-food  franchising  goodwill  head_offices  iconic  JWT  layoffs  Maple_Leaf_Foods  Marina_Strauss  organizational_culture  playbooks  private_equity  R&D  RBI  restructurings  staying_hungry  supply_chains  supply_chain_squeeze  Tim_Hortons  transformational  walking_away 
february 2017 by jerryking
Wilbur Ross brings art of restructuring to Team Trump
JANUARY 21, 2017 | FT| by: Philip Delves Broughton.

“When you start out with your adversary understanding that he or she is going to have to make concessions, that’s a pretty good background to begin.”

So all this stuff about tariffs and walls and protectionism turns out to be pure gamesmanship.......In his career as an investment banker at NM Rothschild and then running his own business, WL Ross & Co, he has shown repeatedly how he can dive into an industrial dung heap and emerge with a fistful of dollars and not a speck on his silk tie......... Working on his own account, Mr Ross’s most famous deal was his purchase of an ailing group of US steelmakers in 2002, shortly before President George W Bush imposed tariffs on imports of steel. Mr Ross used the protection to fix the operations, cut debt and draft new contracts with workers. He was able to take the company public in 2003 and sell it two years later to the Indian steel mogul Lakshmi Mittal.

He has pulled off similar tricks, mostly successfully in coal mining, textiles and banking, immersing himself again and again in new industries and the minutiae of the laws, trade rules and contracts that govern them.

As a student at Harvard Business School, Mr Ross was mentored by Georges Doriot, a pioneering advocate for venture capital, who said: “People who do well in life understand things that other people don’t understand.”
For bothering to understand things that most people don’t, Mr Ross deserves more credit than he gets. He is often easily dismissed as a vulture or someone who buys low and sells high. But what he has done is hard. The devil in restructuring is in the grinding detail of voluminous contracts and difficult, often highly emotional negotiations.
arcane_knowledge  bankruptcy  contracts  detail_oriented  dispassion  emotions  gamesmanship  Georges_Doriot  hard_work  imports  HBS  inequality_of_information  Lakshmi_Mittal  leverage  messiness  minutiae  moguls  negotiations  new_industries  Philip_Delves_Broughton  preparation  protectionism  restructurings  sophisticated  steel  tariffs  thinking_tragically  unsentimental  vulture_investing  Wilbur_Ross 
january 2017 by jerryking
Silicon Valley’s Undertaker: ‘We’re Anticipating a Major Fallout’ - PE Hub
August 10, 2011 By Connie Loizos.

The Sherwood team of seasoned business professionals provides founders, shareholders and senior executives with more than a report – we at Sherwood go beyond traditional tactics to help make decisions and implement plans that achieve exceptional results.
Silicon_Valley  professional_service_firms  restructurings  bubbles  start_ups  founders  management_consulting 
november 2016 by jerryking
Newton Glassman, a private man in the stressful world of private equity - The Globe and Mail
Dec. 06 2013 | The Globe and Mail| BOYD ERMAN.

Newton Glassman has spent the past 11 years running hard to build what has become Canada’s second-largest private equity firm....Mr. Glassman’s firm, Catalyst Capital Group Inc., now runs $4-billion of assets that it mostly puts to work in messy distressed situations, trying to take control of struggling companies and turn them around....Investing in distressed debt is a gritty, confrontational business. Mr. Glassman's firm typically buys bonds issued by a troubled company, spending countless hours searching for the securities that will provide the most influence, then tries to gain control when the company is restructured. The goal is to buy in cheap, seize power if necessary, fix the business and reap the rewards. It can be a rough job, because there is rarely enough money to go around and someone usually loses out.

When he was at Cerberus, founder Steve Feinberg warned him about the personal cost of building a firm, telling him: “There is a massive difference between being one of the key players and being THE guy in charge.”

Catalyst’s charitable arm also is building a knowledge centre that will work with universities to provide investors, lawyers and judges with more education about credit markets. Mr. Glassman has harsh words for the way credit markets sometimes work in Canada, as judges have sometimes upset the traditional order of restructurings...

Mr. Glassman says that at the time, he thought Mr. Feinberg was “just yakking.” But if he knew then what he knows now about building his own firm, he says he probably would have stayed at Cerberus. “The job of being the guy is if you take your responsibilities seriously, it is all encompassing.”
private_equity  Newton_Glassman  Bay_Street  Boyd_Erman  Catalyst  personal_cost  distressed_debt  turnarounds  Cerberus  vulture_investing  restructurings 
december 2013 by jerryking
Restructuring Firms Bulk in Asia -
February 5, 2013 | WSJ | By KATHY CHU.

Restructuring firms are being hired by companies or their private-equity firm owners to boost efficiency, sell assets or renegotiate debt in industries from shipping to electronics. Their clients range from homegrown Asian companies like debt-laden Vietnamese shipbuilder Vinashin to troubled Western firms operating in the region, such as software firm Trident Microsystems Inc.....The restructuring industry is in its infancy in Asia, but its services increasingly appeal to companies that "lack quality management and transformational skills, and have rode on the tidal wave of economic growth," says Denis Wang, director of global business studies at the Chinese University of Hong Kong's Business School.
growth  restructurings  law_firms  Alvarez_&_Marsal  AlixPartners  Asia_Pacific 
february 2013 by jerryking
Vulture Funds Serve Purpose
Dec 20, 2006 | National Post | Marie Beaudette.

Harbinger said Crescent declared "thermonuclear war” by resisting the hedge fund's advances. But the rule of

mutually assured destruction doesn't apply in bankruptcy: Crescent eventually conceded to a hedge fund determined to win.
Regulators are starting to question the role hedge funds play in Chapter 11 cases. The Securities and Exchange Commission has expressed concern about whether hedge funds have lied to gain leverage in bankruptcy cases and traded on sensitive information gained through the process.
New York University Professor Edward Altman estimates there are at least 160 investment funds in the US. specializing in distressed-company securities. "A new breed of distressed-debt investors, called ‘vulture funds,‘ has emerged as one of the fastest- growing sectors of the burgeoning hedge fund and private equity field," Mr. Altman wrote in a recent study.
vulture_investing  bankruptcies  distressed_debt  restructurings  SEC 
september 2012 by jerryking
Trends in private equity
Winter 2004 | Journal of Wealth Management | Mark Anson
trends  private_equity  LBOs  restructurings 
august 2012 by jerryking
Prime time for corporate nurses
January 29, 1991 | Financial Post | by Barry Critchley and Susan Gittins
turnarounds  restructurings  recessions 
july 2012 by jerryking
Opportunities in Distressed Securities
March 28, 1995 | Finance Weekly | by Martin Sass, CEO of M.D. Sass Investors Services, a New York Cky—based investment management firm.

Some of the best investment opportunities lie in post-bankruptcy investing....Five factors contribute to success in distressed-security investing: high absolute return potential; astute, rigorous financial analysis: expertise in the bankruptcy and restructuring process; investment flexibility (i.e.. the ability to invest both long and short, as well as anywhere in the capital structure ranging from senior debt to subordinated debt to equity): and portfolio diversification....Another important task is making an informed estimate of the time it will take to realize the forecasted value and any likely intervening events (i.e., litigation, negotiations and other elements of the restructuring process) that will affect that value and/or the duration of the workout. A workout of a distressed
situation could take anywhere from six months to five or more years. This makes a difference when figuring your annualized return.
distressed_debt  capital_structure  howto  workouts  bankruptcies  investors  opportunities  restructurings 
july 2012 by jerryking
Adequate Due Diligence: Are You Sure?
Fall 2002 | Journal of Private Equity | by Michael J. Hausman.

Review of:
(a) Prior acquisitions and/or acquisition strategies;
(b) Profitability by product line;
(c) Historical and projected financial results;
(d) current status of the industry (or industries) in which the company operates;
(e) existing customer relationships.
automotive_industry  due_diligence  distressed_debt  restructurings 
april 2012 by jerryking
Restructuring Private Equity Investments
Fall 2003 | The Journal of Private Equity | Peter M. Susko
private_equity  restructurings  howto 
march 2012 by jerryking
Why Flush Financiers Court Unloved Businesses -

Relatively Cheap Entries, Potential for Rich Exits Draw Bargain Hunters to the Turnaround Game.

Veteran financiers flush with cash are turning their sights on industries shunned by the stock market, tapping into tax benefits, newfangled loans and an ability to borrow far more money than public shareholders would tolerate.

...These deals offer a chance for successful restructuring of companies and industries struggling to meet the challenges of globalization, modern technology or economic cycles. As private enterprises, they can undertake union talks and financial restructuring outside the glare of public scrutiny and without worrying about the impact on small shareholders.
boring  Sam_Zell  turnarounds  Wilbur_Ross  restructurings  private_equity  privately_held_companies  financiers  vulture_investing  economic_cycles  unglamorous 
october 2011 by jerryking
Charlie Rose Talks to Wilbur Ross
August 5, 2010 | BusinessWeek | By Charlie Rose. Investor
Wilbur Ross, who specializes in restructuring failed companies, talks
about troubled banks, the state of U.S. manufacturing, and taxes

By Charlie Rose
Wilbur_Ross  moguls  Charlie_Rose  restructurings  industrial_policies 
august 2010 by jerryking
Turnaround Expert Jerome York Dies 1938-2010
MARCH 19, 2010 | Wall Street Journal | By STEPHEN MILLER and JOANN S. LUBLIN. Turnaround Expert Jerome York Dies at 71.
turnarounds  restructurings  automotive_industry  obituaries 
march 2010 by jerryking
The spin doctor of restructuring
March 16, 2010 | Financial Times | By Matthew Garrahan in Los Angeles. Profiles Mike Sitrick.
public_relations  entrepreneurship  restructurings  turnarounds  financial_communications  Communicating_&_Connecting 
march 2010 by jerryking
Critical Questions Boards Should Ask Now
April 7, 2009 | Business Week | By Beverly Behan. Directors
must become more proactive in these tough times. It may even be
necessary to bring in new members with restructuring experience.
Results from google search "why boards should question management,"
boards_&_directors_&_governance  Freshbooks  questions  hard_times  restructurings  Octothorpe_Software 
february 2010 by jerryking
Why GM survives but Nortel doesn't
Tuesday, June 23, 2009| Globe & Mail | DEREK DECLOET
Nortel  restructurings  R&D  GM 
june 2009 by jerryking
Auto Task Force Set to Back More Loans -- With Strings -
MARCH 26, 2009 | The Wall Street Journal | by NEIL KING JR. and

Obama adminstration's auto-industry team has a seemingly impossible
task: to engineer the most complicated industrial restructuring ever
attempted by the federal government, and to do it fast. Unfortunately,
the team has almost no experience in the car business, but undergoing a
crash course in the myriad woes plaguing the U.S. auto industry.
automotive_industry  bailouts  Obama  restructurings 
march 2009 by jerryking
InfoViewer: Distressed investors worry over strategy
23-May-2007 Financial Times article by Saskia Scholtes in New York.
restructurings  distressed_debt  investors 
february 2009 by jerryking

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