Chillin' out till it needs to be funded
Preview: We were shocked too when our research calendar (for the public blogs, now that employment reorganisation is finally even precluding hiring in the investment banking and research space) could not find time for a Borders and a Kodak bankruptcy. the likely result is in front of us..How did Borders and Kodak businesses reachsa astate they could not make a comeback. to active business in a seemingly thriving industry where ebooks and digital photography can at best only affect part of the business. Why did Sears fail to turnaround so many times, Why Gap has almost always failed in its restructuring adn What is so quick and fast about Macy’s and Walgreens and Airlines like Delta and United that American and US Air almost lost the plot to them.
Kodak and Borders filed bankruptcy thru the same legal team at Alix Partners and handed the bankruptcy reorganisation to the same FTI after taking from Alix, though we are not going to discuss the legal arguments and options unless they are material to the business case. Probably they just lost the will to run it any other way somewhere in the middle?
Eastman Kodak Co. projected a $363.7 million cash loss over 13 weeks ending April 6, the company said in a presentation for lenders.
Kodak plans to offset cash losses by drawing $685 million on the term loan lenders are providing for the Chapter 11 case. In addition to covering the cash losses, the new term loan will repay $100 million owing on a pre-bankruptcy bank credit.(Bloomberg)
We intend to find out and probably as Europe mania subsides, we will find time and resources to devote to the Giant also rans that may have valuable lessons for Corporate America and Global Turnaround managers who have lost thier bet on brands that do not make the effort or get the results they invest for.
We will try and calendarise it for one or two companies a month and hope lives that there will be enough global media data and interest to support this project. ( Of course, I am alone and we includes you too)
Ann Arbor, Michigan-based Borders had 642 stores on entering bankruptcy in February 2011 and was operating 399 when the final liquidations began. It listed assets of $1.28 billion and liabilities totaling $1.29 billion. Debt originally included $196 million on a revolving credit and $48.6 million on a term loan. Trade suppliers were initially listed as being owed $302 million for inventory.
And of course you already used up your gift cards ( recovery for unsecured debtors is at less than 8-10% for the Borders filing