NEW YORK--(EON: Enhanced Online News)--Global professional services firm Alvarez & Marsal (A&M) has received three top honors from the Turnaround Management Association (TMA): 2013 International Turnaround of the Year for its work with Eircom Group Ltd., 2013 Mega Turnaround of the Year for its work with Hawker Beechcraft, and 2013 Mid-Size Transaction of the Year for its work with Arctic Glacier.
Additionally, restructuring veteran Bettina Whyte, a Managing Director at A&M, has been inducted into the Turnaround, Restructuring, and Distressed Investing Industry Hall of Fame for her lasting positive impact on an industry dedicated to stabilizing underperforming companies, rebuilding corporate value, and retaining jobs.
Eircom Group, Ireland’s largest telecommunications provider, faced a deteriorating local economy and mounting competition from cable operators. In early 2011, the company hired A&M to lead a restructuring and develop a new business plan that would stem Eircom’s EBITDA decline. Fueled by intensive communication with a large and diverse group of stakeholders – including customers, unions, staff, regulators, government, media, and a banking syndicate comprised of more than 200 institutions – A&M’s Mike Corner-Jones -- working with Eircom’s advisers Morgan Stanley and Gleacher Shacklock and its legal advisers Linklaters and Arthur Cox -- identified examinership as the most effective corrective plan. The examinership process combines US-style Chapter 11 restructuring provisions and the UK scheme of arrangement, whereby Eircom applied to the Irish court for an examiner to be appointed. The mechanism was previously untested in a case of this size and complexity and relatively unfamiliar to non-Irish stakeholders. As a result, A&M reduced the debt level from €4 billion to €2.3 billion, with first-lien lenders becoming equity holders and second lien holders receiving a share in the reinstated debt and equity alongside the senior debt. The unprecedented process lasted just 54 days, spanning March until June, making the turnaround the largest, fastest and most complex restructuring in Irish history, as well as the third largest restructuring in the world in 2012.
Challenged by the economic downturn, Hawker Beechcraft faced severe financial challenges in late 2011 and engaged Kirkland & Ellis as counsel, Perella Weinberg Partners as investment banker, and A&M as financial adviser. The A&M team, led by Scott Brubaker and Jeffery Stegenga, steered Hawker Beechcraft through a pre-arranged Chapter 11 where the company’s prepetition funded debt was converted to equity and its operations were overhauled, leading to a reorganization of its business around its most profitable product lines. Following the overwhelming acceptance of the company’s plan of reorganization, Hawker Beechcraft emerged from Chapter 11, having shed approximately $2.6 billion in debt, removed hundreds of millions of dollars of pension underfunding and streamlined business operations. The process maximized value for each of the company’s creditor constituencies and provided ongoing employment for approximately 5,100 employees. With a renewed focus on its core Beechcraft product lines, the company re-branded itself as the Beechcraft Company and is currently a world-leading manufacturer of business, special mission, and trainer/attack aircraft.
Arctic Glacier, North America’s second largest packaged ice producer and distributor serving over 75,000 retail, commercial, and industrial customer locations throughout six provinces in Canada and 19 states in the northeastern, central, and western United States, suffered from substantial costs associated with an antitrust investigation and class action litigation, poor weather, and a significant debt load. The A&M Canada team, led by Richard Morawetz, served as the Monitor under the CCAA and Foreign Representative under the Chapter 15 Proceedings. A&M’s restructuring and corporate finance professionals played a significant role, along with Arctic’s financial adviser, in implementing the sales process. Arctic Glacier ultimately completed the sale of its business to an affiliate of H.I.G. Capital, LLC (“HIG”), a leading global private equity investment firm, for approximately $420 million and the assumption of trade debt, leases, and other contractual relationships. As the lenders were repaid in full from the proceeds of sale, A&M is currently administering a Claims Process in its continuing role as CCAA Monitor and Foreign Representative. Overall, the going concern sale preserved numerous jobs and the supply chain and customer base of the companies. The Arctic Glacier proceedings constituted the second largest Canadian insolvency proceedings in 2012.
A&M has been honored numerous times by the Turnaround Management Association, the only international non-profit association dedicated to corporate renewal and turnaround management. A&M's award-winning engagements include: Harry & David, Aquilex Holdings, Chemtura, Rossignol, The Warnaco Group, AMERCO, Spiegel, Inc., Treofan Germany GmbH, and Ihr Platz GmbH & Co.
About Alvarez & Marsal
Alvarez & Marsal (A&M) is a global professional services firm specializing in turnaround and interim management, performance improvement and business advisory services. A&M delivers specialist operational, consulting and industry expertise to management and investors seeking to accelerate performance, overcome challenges and maximize value across the corporate and investment lifecycles. Founded in 1983, the firm is known for its distinctive restructuring heritage, hands-on approach and relentless focus on execution and results.
To learn more, visit www.alvarezandmarsal.com.