When Zenith Electronics Corporation, America's last fully integrated TV manufacturer, faced $500 million of debt and an operating loss of almost $300 million late in 1997, it called on a team of well known restructuring practitioners. Their plan resulted in Zenith's trimming its operating loss to $5.1 million in 1999 while maintaining a revenue level of about $1 billion, and Zenith' successful emergence from Chapter 11 on Nov. 5, 1999. The new Zenith is a consumer electronics leader focusing on brand, distribution and technology and well positioned to participate in the TV industry' transition to digital TV and HDTV by sourcing product from companies such as its parent, LG Electronics.
This Chicago-based team will be honored with the Chicago/Midwest Chapter of Turnaround Management Association (TMA) "Most Effective Restructure of a Company within a Chapter 11 Reorganization" Award at a breakfast forum Friday, Jan 12 at 7:45 a.m. at the Mid-Day Club in Bank One Plaza, 10 South Dearborn, 56th Floor, Chicago. Panelists from the team will speak at 8:15 a.m. on how they overcome the legal challenges and opposition on carrying out a prepackaged plan that called for eliminating all of its publicly held common stock. The speakers include:
-Duncan Bourne, senior associate, and James A. Mesterharm, principal, at Jay Alix & Associates, a turnaround management firm
-Matthew N. Kleiman, Partner at Kirkland & Ellis, a legal firm
-Thomas Halsch, vice president/senior transactor, from Citibank Structured Products Group
Other members of the turnaround team include Bob Dangremond and Jan Ciancanelli from Jay Alix & Associates and Jamie Sprayregen from Kirkland & Ellis.
The Chicago/Midwest Chapter, with nearly 400 members, is one of the largest TMA chapters. The Turnaround Management Association (http://www.turnaround.org), headquartered in Chicago, is the only international nonprofit association dedicated to the development of a stronger economy through corporate renewal. TMA has 32 chapters worldwide, with a membership of 4,100, who include financial advisors, turnaround managers, lenders, attorneys, and judicial and government personnel who participate in corporate financial turnarounds and restructuring.
Copyright 2001 Turnaround Management Association
Reprinted with permission