acm partners restructuring recap - 6.28.15
TRANSCRIPT
ACM Partners Restructuring Recap
June 28, 2015
1 www.acm-partners.com
“ninety-nine per cent of the human race, no matter how smart they are, will do the convenient thing instead of the wise thing, and kid themselves into thinking they can somehow escape the consequences.”
― Poul Anderson
2 www.acm-partners.com
• David Johnson is a founding partner of ACM Partners. His advisory experience spans North America and ranges from pre-revenue startups to Fortune 500 companies.
• David’s writing has appeared in several industry publications, and he has lectured at the University of Chicago, Northwestern University, the University of Wisconsin-Madison, the University of Illinois-Chicago and Loyola University Chicago.
• David earned his MBA from the University of Chicago. His undergraduate studies were completed at Fairleigh Dickinson University.
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David Johnson
www.acm-partners.com
Email: [email protected]
Ph: 312-505-7238
Twitter: @TurnaroundDavid
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The most unloved boom in recent memory is showing cracks as the default rate ticks up.
While the strain of falling oil prices has hit energy companies hard, many companies outside that sector are showing signs of distress as well, potentially illustrating weaknesses in the economic climate that have been under-appreciated.
Corporate Defaults are Piling up at the Fastest Pace Since the Recession
www.acm-partners.com
See full story in Fortune (here)
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With tensions running high between management, multiple creditor classes and the company’s private equity owners, Energy Future Holdings has announced that it will pursue a standalone reorganization, rather than a sale of its power generation unit.
With $42 billion in debt at play, the complex bankruptcy of Energy Future Holdings and its struggle to gain support around any plan, has been illustrative of the challenges that exist when seeking to restructure highly complex deals.
Energy Future Holdings Scraps Bankruptcy Auction Plan
www.acm-partners.com
See full story in Reuters (here)
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The Seventh Circuit recently ruled ((In re 1756 W. Lake St. LLC), Case No. 14-1869 (7th Cir. May 15, 2015)) that lenders provide real value when granting forbearances.
While the case dealt with a single asset real estate bankruptcy, application of this principle in more complex situations could, and likely will, lead to interesting and perhaps counter-intuitive arguments.
Everything Has Its Own Value
www.acm-partners.com
See full story in Weil Bankruptcy Blog (here)
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Seeking to continue originating middle market senior and unitranche loans, Ares Capital Corporation has partnered with Varagon Capital Partners (backed by AIG) to form a middle market lending venture, with a focus on loans up to $300 million.
Ares Forms New Middle-Market Lending Venture
www.acm-partners.com
See full story in Forbes (here)
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Hilco Merchant Resources and Gordon Brothers Group will be managing the Going out of Business (GOB) sales process for the 252 locations of Anna’s Linens, a 28 year-old retailer whose 2013 sales exceeded $400 million.
Anna’s Liquidation Sale Underway
www.acm-partners.com
See full story in Home & Textiles Today (here)
• ACM Partners is a boutique financial advisory firm providing due diligence, performance improvement, restructuring and turnaround services.
• David Johnson can be contacted at:– Email: [email protected]
– Ph: 312-505-7238
• For more information visit: www.acm-partners.com.
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About ACM Partners
www.acm-partners.com