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MODERATOR
Jonathan Marino
Senior Editor
The Deal
Expert Panel
John Ferro
National Managing Partner,
Valuation Services
Grant Thornton LLP
Expert Panel
Brent Hazzard
Managing Director
GE Capital
Expert Panel
Rich Liebman
Managing Director, Taxation
Grant Thornton LLP
Expert Panel
David Wirt
National Chair of the
Bankruptcy, Restructuring &
Insolvency Group
Locke Lord LLP
Distressed Industries
Industry
Energy
TMT
Transportation
Financial Services
Healthcare
Mining
Leisure
Agriculture
Year to date through Nov. 26, 2013
*Companies with liabilities of at least $50 million
No. of distressed
warnings
29
12
9
9
8
8
5
4
Winning Percent of Stalking Horse Bidders
Year
No. of deals
No.
withdrawn
2009
448
74
16.5% 83.5%
2010
303
54
17.8% 82.2%
2011
265
67
25.3% 74.7%
2012
273
75
27.5% 72.5%
2013
335
76
22.7% 77.3%
The winning percentage of stalking-horse bidders have increased*
*Section 363 sales
Losing % Winning %
Restructuring Retailers
$6,610
$2,440
$1,213
J.C. Penney Co. J.Crew Group Inc. RadioShack Corp.
J.C. Penney Co.
J.Crew Group Inc.
American Apparel Inc.
Coldwater Creek Inc.
$389
$323
American
Apparel Inc.
Coldwater Creek
Inc.
RadioShack Corp.
Buyout Busts –Q14
Year
Number of
Filings
Year
Liabilities
($bill.)
2009
112
2009
122.0
2010
65
2010
21.0
2011
43
2011
60.2
2012
50
2012
13.2
2013
67
2013
$19.5
Bankruptcy cases filed Jan. 1–Nov. 26 of each year*
*Global
AUDIENCE Q&A
Thank you for joining Part 2
Driving Value Out of Distress: Negotiation, Valuation and
Execution
Please Join Us For:
Part 3:
Driving Value Out of Distress: Post-Acquisition Integration
Thursday, February 20, 2014 - 1:00 p.m. ET
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Driving Value Out of Distress: Target Identification and Due
Diligence
Please visit TheDeal.com
John Ferro
National Managing Partner, Valuation Services
New York
Grant Thornton LLP
T 212.542.9574
F 212.370.4520
[email protected]
Executive summary
John Ferro is national managing partner for the Valuation Services practice with more than 29 years of
valuation, investment banking and litigation consulting experience. Before joining Grant Thornton, Mr.
Ferro founded the investment banking practice at FTI Consulting. Prior to FTI, Ferro was with a Big Six
accounting firm for 18 years, serving most recently as a worldwide partner and the managing director in
charge of the technology, media and communications corporate finance group in the U.S., a practice he
founded and developed.
Ferro has performed valuations for mergers and acquisitions, shareholder disputes, financial reporting,
estate and gift tax, tax compliance, bankruptcy and litigation purposes. He has served as an arbitrator and
as an expert witness in arbitration disputes, jury trials and bankruptcy proceedings. As an arbitrator, Ferro
has resolved disputes related to claims in excess of $125 million. Disputes have included manufacturing,
financial institutions, revenue recognition, earn out provisions, inventory valuations and numerous
accruals and contingent earn outs.
Brent Hazzard
Managing Director
Connecticut
GE Capital
[email protected]
Executive Summary:
Brent is a managing director with GE Capital’s Restructuring Finance Group. His responsibilities include
the new business origination, structuring and closing of debtor-in-possession, plan-of reorganization and
out-of-court financings. Brent has over twenty years of corporate renewal experience, including
leadership positions in distressed debt investing, workout and corporate finance. Brent is a member of
the International Turnaround Management Association, where he has served in numerous leadership
roles including as international board member on the executive committee.
Brent has a MBA from the Barney School at the University of Hartford and a Bachelor of Science from the
University of Connecticut School of Business. He as performed postgraduate work at Harvard Business
School and the Stonier Graduate School of Banking. Brent is a member of the adjunct faculty at the
University of Connecticut School of Business.
Rich Liebman
Managing Director, Taxation
Chicago, IL
Grant Thornton LLP
T 312.602.8220
F 312.602.8099
[email protected]
Executive summary
Rich Liebman provides tax structuring and due diligence services to private equity firms and strategic
buyers. He works on deals ranging from $10 million acquisitions of privately held companies to billiondollar-plus public company transactions. In addition to his transaction work, Liebman has significant
experience in several specialized tax areas, including consolidated federal income tax returns, net
operating loss limitations and bankruptcy tax; is a frequent speaker at tax forums, including Tax Executives
Institute and the Kent Law School Federal Tax Conference; and is the author of a number of tax articles.
David Wirt
National Chair of the Bankruptcy, Restructuring
& Insolvency Group
Chicago, IL
Locke Lord LLP
T 312.443.0256
F 312.896.6256
[email protected]
Executive summary
David Wirt is national chair of the Bankruptcy, Restructuring & Insolvency group. He focuses his practice
on insolvency, bankruptcy, and business reorganization matters.
Over the last two decades, he has represented numerous corporate debtors and official creditor
committees, institutional lenders, trade creditors, and governmental agencies throughout the United
States in all aspects of insolvency workouts and litigation.