acm partners restructuring recap - 7.26.15
TRANSCRIPT
1 www.acm-partners.com
“The truth is not always beautiful, nor beautiful words the truth.”
― Lao Tzu, Tao Te Ching
2 www.acm-partners.com
3
Lenders across the risk spectrum have been extremely supportive of shale drillers in recent years, but the constant drumbeat of energy company defaults is testing their patience.
Resets to energy company lines of credit, based as they are on prevailing oil prices, are expected to severely impact the liquidity of many small and midsize drillers. High yield lending will fill some of the gap, but as the patience of lenders is tested many companies will find that nothing short of a distressed sale process or a debt for equity restructuring will solve their problems.
Lenders Growing Impatient With U.S. Shale Revolution
www.acm-partners.com
See full story in Bloomberg (here)
4
The continuing attempts of Caesars Entertainment Corp. (CEC) to avoid a bankruptcy filing while its subsidiary, Caesars Entertainment Operating Corp. (CEOC), takes advantage of the chapter 11 process were dealt a severe blow when lawsuits by the creditors of CEOC were allowed to proceed over the objections of equity sponsors Apollo Management and TPG Capital.
The bankruptcy case of CEC has been especially contentious, as creditors have alleged that a series of restructuring maneuvers engineered by Apollo Management following the buyout of Caesars in 2008 amounted to fraudulent conveyance.
Market Reacts To Bankruptcy Court Refusal To Halt Caesars Lawsuits
www.acm-partners.com
See full story in Forbes (here)
5
Homejoy Shuts Down After Battling Worker Classification Lawsuits
www.acm-partners.com
See full story in Recode (here)
Homejoy, a venture-backed startup that had raised $40 million based on a business model dependent on contractors, has announced that it will shut down.
In explaining the decision, Homejoy CEO Adora Cheung cited a recent ruling by the California Labor Commission regarding the classification of workers as employees or contractors as well as the company’s inability to attract sufficient investor interest for its next round of funding.
6
A recent investigation by Reuters his indicated that New Jersey has looked into a robust intervention for troubled Atlantic City, a notion that many in the city’s leadership strenuously object to.
New Jersey appointed Kevin Lavin as emergency manager in January, noting that Atlantic City’s finances have deteriorated significantly in recent years as the city’s tax base has been negatively impacted by the closure of a number of major casinos.
New Jersey eyed takeover of Atlantic City's public assets
www.acm-partners.com
See full story in Reuters (here)
7
Grocery store A&P, which in the mid-20th century was a retailing colossus, has entered chapter 11 bankruptcy for the second time in five years.
This second filing illustrates the transience of advantage, even dominance, in any industry over a sufficiently long time horizon.
Grocery store chain A&P files for bankruptcy again
www.acm-partners.com
See full story in Fortune (here)
• David Johnson is a founding partner of ACM Partners, a boutique financial advisory firm providing due diligence, performance improvement, restructuring and turnaround services.
• In his over 15 years as a change agent, David has served as an advisor, board member, interim manager, investor and operator at companies ranging in size from pre-revenue startups to Fortune 500 organizations.
• David has several publications to his credit and is a regular speaker on the topics of performance improvement, turnaround and restructuring.
8
David Johnson
www.acm-partners.com
Email: [email protected]
Ph: 312-505-7238
Twitter: @TurnaroundDavid