Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups / Edition 2

by Stuart C. Gilson, Edward I. Altman

Overview

An updated look at how corporate restructuring really works

Stuart Gilson is one of the leading corporate restructuring experts in the United States, teaching thousands of students and consulting with numerous companies. Now, in the second edition of this bestselling book, Gilson returns to present new insight into corporate restructuring.

Through real-world case studies that involve some of the most prominent restructurings of the last ten years, and highlighting the increased role of hedge funds in distressed investing, you'll develop a better sense of the restructuring process and how it can truly create value. In addition to "classic" buyout and structuring case studies, this second edition includes coverage of Delphi, General Motors, the Finova Group and Warren Buffett, Kmart and Sears, Adelphia Communications, Seagate Technology, Dupont-Conoco, and even the Eurotunnel debt restructuring.

• Covers corporate bankruptcy reorganization, debt workouts, "vulture" investing, equity spin-offs, asset divestitures, and much more
• Addresses the effect of employee layoffs and corporate downsizing
• Examines how companies allocate value and when a corporation should "pull the trigger"

From hedge funds to financial fraud to subprime busts, this second edition offers a rare look at some of the most innovative and controversial restructurings ever.

Product Details

ISBN-13:	9780470503522
Publisher:	Wiley
Publication date:	04/05/2010
Series:	Wiley Finance , #544
Edition description:	2nd ed.
Pages:	848
Product dimensions:	6.30(w) x 9.00(h) x 1.70(d)

About the Author

STUART C. GILSON is the Steven R. Fenster Professor of Business Administration at Harvard Business School and is an expert in corporate restructuring, valuation, and corporate finance. He teaches corporate restructuring in the school’s MBA program and also teaches restructuring, valuation, and corporate finance in a number of senior executive education programs. Gilson’s research on restructuring has been widely cited in numerous national news and business periodicals, and has received a number of awards, including the prestigious Graham and Dodd Award. He has been named one of the nation’s top bankruptcy academics by Turnarounds and Workouts magazine.

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Table of Contents

Foreword xi

Introduction xv

Part One Restructuring Debt and Liabilities 1

Chapter 1 Investing in Distressed Situations: Strategies, Opportunities, and Risks 17

Chapter 2 Note on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) 69

Chapter 3 Kmart and ESL Investments (A) 85

Chapter 4 Kmart and ESL Investments (B): The Sears Merger 115

Chapter 5 National Convenience Stores Incorporated 129

Chapter 6 Continental Airlines—1992 157

Chapter 7 Flagstar Companies, Inc. 185

Chapter 8 The Finova Group, Inc. 225

Chapter 9 Arch Wireless, Inc. 259

Chapter 10 Adelphia Communications Corp.’s Bankruptcy 291

Chapter 11 Buenos Aires Embotelladora S.A. (BAESA): A South American Restructuring 341

Chapter 12 Alphatec Electronics PCl 377

Chapter 13 Groupe Eurotunnel S.A. 417

Chapter 14 Delphi Corp. and the Credit Derivatives Market 447

Part Two Restructuring Equity and Assets 473

Chapter 15 Humana Inc.: Managing in a Changing Industry 487

Chapter 16 USX Corporation 511

Chapter 17 E.I. du Pont de Nemours and Company: The Conoco Split-off 535

Chapter 18 Seagate Technology Buyout 561

Chapter 19 The Loewen Group Inc. 587

Chapter 20 Donald Salter Communications Inc. 617

Part Three Restructuring Employees’ Claims 641

Chapter 21 Restructuring at Delphi Corporation 651

Chapter 22 Navistar International 683

Chapter 23 Scott Paper Company 713

Chapter 24 UAL Corporation 747

Appendix A Closing the Value Gap: A Simple Framework for Analyzing Corporate Restructuring 781

Appendix B Valuing Companies in Corporate Restructurings: Technical Note 785

About the Author 803

Index 805