Entries tagged "busted buyout"
The stigma associated with a long Chapter 11 stay often leads debtors toward prenegotiated and prepackaged reorganization plans, offering them the chance to get in and out of bankruptcy in a matter of months. But there's a flip side to these types of plans. Critics of such plans often say that the reorganizing company ultimately ignores its operational issues and often could be right back under the bankruptcy court's thumb again. Case in point: Bally Total Fitness Corp. ...
Discount clothing retailer Steve & Barry LLC's has a new lease on life, purchased out of bankruptcy on Aug. 22. Now, the Port Washington, N.Y.-based company made a new hire in Harold Kahn, who will assume the chief executive position. Kahn is no stranger to struggling retailers as he was president of Abraham and Straus and Montgomery Ward, both companies which shut their doors years ago because of waning sales and tough competition. ...
A settlement between SemGroup LP and its nonbankrupt subsidiary, SemGroup Energy Partners LP, a master limited partnership, will provide the latter with a temporary lifeline, but not much more. ...
Hexion Specialty Chemicals Inc. CEO Craig Morrison pulled no punches when he testified as the first witness in the case Huntsman Corp. brought against his company saying Hexion and Huntsman would have "a capital structure that's insolvent, that doesn't work." Huntsman filed suit against rival Columbus, Ohio-based Hexion, which is seeking to walk from its $10.3 billion agreement to acquire rival specialty chemical maker Huntsman. The trial is scheduled to run for six days before Vice Chancellor Stephen Lamb of the Delaware Court of Chancery. ...
Israel's Gilat Satellite Networks Ltd. has officially terminated its agreement to be taken private after the group of private equity firms balked at closing the deal. ...
Kicking off the week of May 12, the $1.3 billion take-private of Cumulus Media Inc. bit the dust after its would-be buyers (chairman, president and CEO Lew Dickey and Merrill Lynch & Co.'s private equity arm) and the Atlanta-based radio broadcaster could not renegotiate terms. Cumulus may be the latest, but SLM Corp. kicked off a wave of terminations blamed on everything from the credit markets to material adverse changes in a company's business to an inability to renegotiate on favorable terms. So many stalled deals, in fact, have left PE firms excluded from some auctions, sending targets into the...
