The Newsletter of CORPORATE RENEWAL · Call Mike O’Malley at 312-845-4457, Gail Heldke at...

From Our President:

Volume 7, Number 4

TURNAROUND MANAGEMENT ASSOCIATION

William J. Hass

What’s Inside?

! Upcoming Events — 2-5

! Past Events — 7-15

! VP’s Corner — 7

! Chicago Chapter CTPs — 16

! Liquidity: It’s All Relative — 17

! Member News — 18

! New Member Listing — 19

! What’s the Deal? — 21

! Assignmment for the Benefit ofCreditors: An Alternative toBankruptcy — 22

! Platinum Sponsor Profile: Hilco — 24

! Board Member and CommitteeListing — 25

! Membership Application — 27

The Newsletter of

CORPORATE RENEWAL

C h i c a g o /M i d w e s t C h a p t e r

July/August 2006

Your Choice: Great Experiences This FallEducation, Networking and Fun

TMA has a wide variety of events to fit a variety of

member needs. Only you can be the one to select and blend together those events that have value to you. No one – including your president— can

attend all of the 35 events of our chapter and those of ournational organization.

We all vote with our feet and participation. Attendance figures give us some indicationof what you want but we also value your thoughts and ideas. Later this summer, wewill be surveying our members to determine how to make TMA experiences evenmore valuable. We are looking forward to your input on how we can make our chaptereven better and more valuable for you. However, the best route to great experiences isfor you to get involved in one of our many committees. Regardless, we hope to see youat one of the fall events below:

September 15th, Friday morning network at the Bi-Monthly Breakfast Forum,featuring Harry Nolan, author of the book on the long decline of Delta Airlines: “AirlineWithout a Pilot – Lessons in Leadership.”

Later on September 15th attend the full-day Management Body of Knowledgeworkshop. This full-day national program is ideal for those who seek the CTPcertification or desire to expand their knowledge about the practice of turnarounds andcorporate renewal. You can register easily at actp.org.

The “Negotiation Workshop” on October 5th at the Standard Club will offer twohalf-day sessions featuring the popular and entertaining Professor Leigh Thompson ofNorthwestern University. Pick the session that fits your schedule and join in thenetworking during the luncheon hour.

If you need more fun and sun, join us in Orlando for the TMA Annual Conferencefrom October 11 to 14th at the JW Marriott Grand Lakes for great experiences rangingfrom golf to education to power networking.

And last but not least, our annual Senior Executive Forum on November 13th at theStandard Club will keynote Terry Lundgren, CEO of Federated Stores. Terry will sharewith us the challenges in retailing today and managing the landmark transition fromMarshall Field’s to Macy’s. This event is sure to be a “members only” sellout. so joinnow at the discounted rate of $150 if you are not a member. If you are currently amember, invite a friend or associate to join now and help Chicago be the first and onlyTMA chapter to achieve the goal of 1,000 members.

Committee participation is at an all-time high because that is where the real networkingand relationship building occurs. Get involved. Create some new great experiences ofyour own. Let us know your wishes and what is of value to you.

Looking forward to seeing you September15th.

Bill Hass

The Newsletter of Corporate Renewal is apublication of the Turnaround Management

Association, Chicago/Midwest Chapter. It is issuedfive times annually. Submissions to the newsletter

should be directed to:

Cheri Anderson, [email protected] Leipold, [email protected]

TMA " Chicago/Midwest Chapter " July/August 2006 "

August 24Women’s Group “Walk in the Park”Millennium Park Tour and ReceptionPlease see page 4 for more information

September 9ALS Charity WalkMontrose HarborPlease see page 5 for more information

September 15Breakfast Forum“Airline without a Pilot – Lessons in Leadership”Mid-Day ClubPlease see page 4 for more information

September 15Second Annual Motorcyle Ride to MilwaukeePlease see page 5 for more information

September 15Summer BOK Series Workshop: ManagementOffices of Gardner, Carton & DouglasMore information can be found on this page

September 16CTP Exam – ManagementMore information can be found on this page

September 18Milwaukee Brewers OutingMiller Stadium – WisconsinRegister now at www.chicagoturnaround.org

October 5Negotiations Workshop (two half-day options)The Standard Club

October 11-14TMA International ConferenceOrlando, Florida

November 10Breakfast ForumMid-Day Club

November 13Senior Executive Forum*Keynote: Mr. Terry LundgrenCEO, Federated Stores*Due to the popularity of this event, it is a mem-bers only program. Join today for only $150(through August 31st)

Upcoming Events Fall Programming Line-Upto Feature Prominent Speakers

The Chicago/Midwest Chapter of the TMA has a fall programming schedule that promises tooffer members a variety of quality educational and networking events you won’t want to miss!Details on all events will be mailed in the coming weeks—but for now, be sure to mark yourcalendar and save the dates…

October 5Negotiations Workshop

Two half-day workshops will be offered featuring guest speaker Professor Leigh Thompson ofNorthwestern University. Attendees will be offered the option of attending the morning or theafternoon workshop. The seminar will include the lecture, illustration or examples of negotiatingstrategies and tactics as well as hands-on case studies in which participants conduct actualnegotiations with one another.

October 11-13TMA National Conference

OrlandoThis annual event draws hundreds and includes a comprehensive agenda of programmingoptions and more – including a keynote opening session featuring Former U.S. Secretary ofLabor, Robert B. Reich, who will discuss “China, India and the Future of Everything.”

November 13Senior Executive Forum

Mr. Terry LundgrenCEO, Federated Department Stores

Join us as we welcome the CEO of Federated Department Stores, Mr. Terry Lundgren, to thisyear’s Senior Executive Forum. We are confident Mr. Lundgren will have a great story to tellabout the transition from Marshall Fields to Macy’s. Invitations to this members-only event willbe sent in early October.

TMA MembersThis summer’s Body of Knowledge Series is almost over.

The Body of Knowledge workshops are excellent continuing education for any-one looking to refresh their knowledge, learn more about the turnaround industryor those preparing for the Certified Turnaround Professional (CTP) exam. It’s nottoo late to register for our final session of the summer:

MMMMManagement – Fanagement – Fanagement – Fanagement – Fanagement – Fridayridayridayridayriday, S, S, S, S, September 15eptember 15eptember 15eptember 15eptember 15James Seward, Ph.D., University of Wisconsin

The course will be held at the offices of Gardner, Carton & Douglas. For thoseinterested in certification under the CTP Program, the exam for the section will beoffered in Chicago on the following Saturday.

Who’s a CTP? See page of this newsletter for a list of which professionals haveattained the status of Certified Turnaround Professional.

For more information and/or to register for this workshop, visit www.actp.org orcontact Nicole Gibby at 312-242-6034.


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Call Mike O’Malley at 312-845-4457, Gail Heldke at 312-845-4455 or KimberlyJablonski at 312-845-9762 to find out how we can deliver for your business.

Harry Nolan Headlines September’s Breakfast ForumBy Mark Leipold, Gould & Ratner

United …. American….Northwest….U.S. Air…. Several years ago, whenturnaround professionals discussed the impending restructurings orbankruptcies of our legacy air carriers, the only name that was omitted wasDelta. It was a well-respected company, with good labor relations, significant

financial reserves and what appeared to be a near-monopoly on air transportation in theSoutheast. Now, everyone asks the question, “What happened to Delta?” How couldthis widely respected company go from a leader in its industry to bankruptcy in a fewshort years?

Please join us for our Breakfast meeting on September 15th, as Harry L. Nolan, author ofthe book Airline Without A Pilot – Lessons in Leadership, attempts to answer this questionas well as what can we learn from Delta’s troubles. Harry is president of ManagementAdvisory Services, Inc., an Atlanta-based management consulting firm he founded in 1982.

Harry poured over Delta’s financial statements, going all the way back to the founding ofthe company in 1929. He reviewed many communications from the archives, including anemployee film featuring Delta’s founder, C.E. Woolman, shortly before his death in 1966.Dozens of news articles over a period of decades were gathered and read, along with all thepreviously published books about Delta. Then he extensively interviewed 59 members ofthe Delta family – current employees and retirees, outside business partners and customers.Harry will share not only the story of Delta, but also his thoughts on the impact of leadership– whether outstanding or poor – on a company.

Airline Without A Pilot – Lessons in Leadership is the inside story of Delta’s success,decline and bankruptcy and, as the book’s subtitle indicates, Harry will share the warstories, the lessons he distilled from his research and his observations.

Special bonus for members... Be one of the first 100 to register and receive a complimentarycopy of Harry’s book. Register online at www.chicagoturnaround.org or call 815-469-2935.

TMA Women’s NetworkingGroup is pleased to host

A Walk in the ParkThursday, August 24

5:30 - 7:30 p.m.

Featuring guest speakerMr. Ed Uhlir, FAIA

Director of Design, Architecture &Landscape, Millennium Park

Take a “walk in the park” with theWomen’s Group as your host. Theevening will begin with an informalcocktail reception at the University Club,where we will welcome our guestspeaker. Following Mr. Uhlir’s presenta-tion, we will enjoy a personal tour of thepark.

Plan to join us and bring a friend!Register online at

www.chicago.turnaround.orgor call (815) 469-2935.


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a top-tier syndications desk and a broad array of capital markets products and services, visit

www.bofa.com/businesscapital19 or call Jim Cockey, Midwest Region Marketing Manager at 312.827.4215.

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$400,000,000Working Capital/Growth

______

Apparel and recreationalcamping products marketer

$225,000,000Refinance/Exit Financing

______

Wire and cableproducts manufacturer


______

Lawn and garden toolmanufacturer and marketer

$80,000,000Exit Financing/Working Capital

______

Electrical solutionsprovider

£60,000,000Working Capital/Growth

______

Titanium dioxidemanufacturer


______

Modular classroom andindustrial building

designer and manufacturer

Millennium InorganicChemicals Limited

ALS* Walk 4 LifeSeptember 9 – 8:30 a.m.-2:00 p.m.“Teaming Up to Turnaround ALS”

*ALS is Amyotrophic Lateral Sclerosis, also known as Lou Gehrig’sDisease

It’s not just about raising money….It’s not just about remembering those who are or were affected by the disease….IT IS about joining together to have fun with your colleagues, your family and friends on the beautiful lakefront while raising money for a good cause.

For the fourth consecutive year, The TMA Chicago/MidwestChapter is “Teaming up to Turnaround ALS” and we want youto be a part of our team, which includes TMA member JonathanBloom’s family. Jonathan’s father, Bill Bloom (and a former TMAmember) lost his battle to the disease this past year. We want tocontinue the fight to “turnaround ALS” and will join forces withJonathan’s family to “Beat this for Bill”!

The event itself is a two-mile walk along the Montrose Harborarea of the lakefront. After the walk, there will be a complimentarypicnic for all. Make this a day to celebrate family, celebratefriends and celebrate life as we Team Up to Turnaround ALS andBeat this for Bill!

For more information, contact the TMA office at 815-469-2935.TMA members, family and friends are all welcome to join in thisCommunity Service Committee-sponsored event!

Second Annual Motorcycle RideFriday, September 15*

W A N T E D …FOR HAVING TOO MUCH FUN

If you are not in this picture but want to be, don’t miss the SecondAnnual Chicago TMA Motorcycle Ride. Last year’s event was a greattime for all who participated… and we expect this year’s event to beeven better!

The day will begin immediately following our bi-monthly breakfastforum – similar to last year. Details will be forthcoming by e-mail.

For more information, feel free to contact any of the followingRoad Captains:

Frank Melazzo, [email protected], 312-474-6177Carmen Lonstein, [email protected], 312-807-4397Larry Adelman, [email protected], 312-681-1818

*Note: The original date for this rescheduled event was July 28th.


Barry Alvarez Shares his

“Turnaround Tales”

What was going on June 19th that brought together more

than 100 TMA members and guests to the Wisconsin Club in Milwaukee? None other than keynote speaker Barry Alvarez, Director of Athletics at the University

of Wisconsin and one of the winningest football coaches in theschool’s history.

Mr. Alvarez shared stories about how he has been at the forefrontof the revival of the Badger athletic program during his entire tenurein Madison. He piloted Wisconsin to three Big Ten and Rose Bowltitles (including back-to-back titles in 1998-99) en route to becomingthe winningest football coach in school history (118-73-4 record) andjust the 10th coach in Big Ten history to win 100 games at oneinstitution. Many TMA professionals might say that this is a realturnaround success story!

Mr. Alvarez’s casual and personal presentation allowed attendeesto ask a variety of questions before, during and after his speech. Allagreed that his friendly and down-to-earth approach to sharing hisstory made it all the more enjoyable. Congratulations to theMilwaukee Programs Committee for another outstandingprogramming and networking event!

Barry Alvarez (left) and Mike Paulsen, a longtime fan

Coming Soon to a TMA Newsletter near you..

VP’VP’VP’VP’VP’s Corner:s Corner:s Corner:s Corner:s Corner:By: Joe Fobbe, Vice President of Communications

Next issue, be on the lookout for a new column in your TMANewsletter. In this column we will highlight the variety of waysmembers can get involved in their chapter. We will discuss theroles of the various VPs and officers of our chapter and also identifythe numerous committees that members can become involvedwith. Stay tuned.

Photo by Chris Glatz,Glatz Management Services Inc.

TMA Volunteers Set the Landscape for SuccessBy Chris Glatz, Chicago TMA

What do…10 gallons of Hostas

5 Purple Cone Flowers15 Yellow and Red Coralbells

5 Yarrows and 5 Liatris20 Yard waste bags

10 Flats of Impatiens10 Flats of Petunias

120 cubic feet of cedar mulch40 cubic feet of peat moss

...all add up to?

One very busy Friday afternoon, on June 9th, 14 TMA volunteers took it upon themselves to landscape the facilities of Lawrence Hall Youth Services on the near west side under the leadership of the Community Service Committee. One of the oldest child- welfare agencies in Illinois, Lawrence Hall delivers an essential continuum of care—a lifeline of action, hope, andopportunity—that enables children to build more promising futures and their own success stories.

TMA members, family and friends met at lunchtime to begin the task at hand. Four homes on the Lawrence Hall grounds were rototilledand raked of debris so that the over 100 plants could be laid out. Though the day required a lot of hard physical labor, everyone who wasthere agreed it was fun and rewarding. By the end of the day, petunias and impatiensbrought new life and color to the facility. Employees who were leaving for the daywere amazed and very grateful.

The day concluded with some pizza and refreshments for all the volunteers—butwe should have thought about handing out some BenGay®!

Though no formal word has been received, we believe some of us discovered “newmuscle groups” the next morning!

Congratulations to everyone on a job well done and special thanks to all ourvolunteers: LisaJohnson, Sean Silver,Annie Swisshelm-Silver,Chris Glatz, AlDeGuzman, TinaHughes, Patrick Donahue,Megan Miller, HildaPercella, Paul Adamczyk,Mark & Abby Homuth,Mike Paulsen and KenStemke.

The following thank you note wasreceived from Lawrence Hall:

“On behalf of Lawrence Hall and the

residents at main campus, we thank you and

the members of the Turnaround Manage-

ment Association for taking the time to

make a difference. We appreciate the lovely

gardens that were planted at the cottages.

We look forwrd in the coming weeks to see

the flowers bloom and add color to the

campus. The flowers are an example of

what many of our residents need - nurture so

they too can bloom into bright and self-

sufficient adults.”

Photos by Chris Glatz,Glatz ManagementServices Inc.

Before After



SummerFest Fun!

On a beautiful summer evening this past July 6th, nearly 100 attendees gathered for one of Milwaukee’s greatest summer events: SummerFest 2006! This year, the TMAChicago/Midwest hosted its reception just outside the

Harley Davidson stage area. The private area was centrallylocated and offered panoramic views of the festival grounds aswell as Lake Michigan.

Congratulations to the Milwaukee Programs Committee Co-chairs Phil Ostroski, Mike Colloton, Dan Quirk and Bob Ollhoff foranother outstanding event. Those that were in attendance agreedthat the venue, food and, of course, the array of stage shows tovisit and listen to were terrific. From “electronic music” to theOutlaws, SummerFest 2006 had something for everyone. This isthe second year in arow the MilwaukeePrograms Committeehas hosted thisnetworking receptionand it was againapparent how mucheveryone enjoys thisnew tradition!

Photos by Chris Glatz,Glatz Management Services Inc.

FBCC ad here


Lunch with the TMAWomen’s Group

Patricia Wu, Great American Group

The TMA Women’s Group hosted an informal luncheon at theEast Bank Club on Friday, June 2. The intimate gathering offemale professionals (and a few men too!) was a greatopportunity to meet new faces and network. All luncheonattendees had the opportunity to introduce themselves to theentire group and explain what form of business brought themto the TMA.

Like all other Women’s Group Events, the luncheon was NOTexclusive to women. So, ladies and GENTLEMEN curious tosee what happens when the women come together; pleasejoin us at the next event!

For more information, please contact Women’s Groupcommittee chairs, Gail Heldke, Kim Metzner or Patty Wu, andlook out for notices from Chris Glatz. The next event will be acocktail reception and a behind-the-scenes presentation onMillennium Park, followed by a guided park tour. This eventwill be one not to miss! Please mark your calendars forThursday, August 24th for “A Walk in the Park.”

Women’s Group AccessoryShow & Networking

ReceptionBy Gail Heldke, Wells Fargo Business Credit

On the evening of July 13th, the Women’s Group of the Chicago/Midwest Chapter hosted a fun evening of networking,refreshments and a charity boutique to raise funds for the ChicagoAbused Women Coalition at the Mohawk Showroom of TheMerchandise Mart. Over 30 women (both members and guests)were in attendance.

Ms. Widge Liccione, Director of CAWC, was also in attendancethat evening, and discussed the programs and outreach effortsthat CAWC provides to the greater Chicago-area community.Ms. Liccione agreed to again share her message to the greaterTMA membership at our September breakfast meeting, wherethe Women’s Group will present her with the donation check forCAWC.

The event raised approximately $500 for the organization andeveryone enjoyed the evening of good camaraderie, refreshmentsand the accessory offerings while raising funds for such a worthycause.

Introducing Jim & Myriah VargoBy Joe Fobbe, PNC Business Credit

WINONA, MN – You could not have asked for a more incredible setting for a beautiful coupleon the threshold of exchanging their sacred vows. Glorious Winona, Minnesota (the bride’shometown) provided the backdrop for Jim Vargo’s marriage to Myriah Morawiecki on MemorialDay weekend. The celebration began on Saturday evening with a paddle-boat rehearsaldinner on the scenic Mississippi River, where more than 100 friends and family (includingnumerous TMA Chicago/Midwest members including a who’s-who of past TMA Presidents!)braved a few early rain drops to enjoy a truly majestic two-hour tour along the shores of themighty Mississippi.

The weather was perfect on Sunday for early morning golf and the late afternoon ceremony,and festivities continued well into the evening at the local country club. Numerous TMAmembers and spouses were sighted on the dance floor late into the evening as the perfect daywas capped off.

The strong support of the TMA Chicago/Midwest members was a result of not onlyeveryone’s friendship with and respect for the groom, but also because of his strong leadershipin our chapter over the past several years. Jim is of course a past president (2003/2004), andhas also served as sponsor committee member, sponsor committee Co-Chair, Treasurer,President-elect, and, most recently, a member of the Community Service Committee.

As President, Jim’s leadership and vision for the TMA Chicago/Midwest challenged ourchapter to reach new heights during his year at the helm. During his year as President, ourchapter held more networking and educational events than ever before, raised more sponsorshipdollars, doubled the size of the golf outing, took in more overall revenue, set record membership,and ended the year well ahead of an aggressive budget. A committed membership and overallchapter effort were the keys to the success, of course, but Jim challenged us to take our chapterto the next level. This success has of course continued under the strong leadership of Dan andBill and today we have the largest, most active membership in the TMA.

Please join me in offering a huge, heartfelt, TMA Chicago/Midwest congratulation to Jim and Myriah.

Call for NominationsTurnaround of the Year AwardTransaction of the Year Award

Pro-bono Project of the Year AwardThe FIRST ANNUAL Outstanding Corporate

Renewal Award— Nominations due by October 15 —

By Kenneth Yager II, Morris Anderson & Associates

The time has come to again shine a bright light on the

accomplishments of the members of the TMA Chicago/ Midwest. Nominate your fellow professionals who have participated in a noteworthy adventure in turning around

an organization, put together a fine piece of transactional work, orcontributed to the smaller business and not-for-profit groups thatare also in need of our organization’s talents.

We have changed the format this year to put more emphasis onrecognition of the award recipients. This year, they will not onlyhave the chance to walk across the stage to be recognized by theirpeers, but we will also highlight their names in a publicity piece thatgets out to the community we all market to and want to be familiar to.

Help us help the TMA grow within the community we live andserve. Nominate a good piece of work by a colleague by sendingtheir name, contact information, client or project name, and a 200 ormore word description of the project. The best format is a descriptionof the situation, the actions taken and the results (financial orotherwise).

Also, the TMA Midwest/Chicago Awards Committee is pleasedto present a new award, The Outstanding Corporate Renewal Award,to support the quest to educate, entertain and promote TMAmembers. This new award will be presented to a professional thatwe, as TMA members, recognize as an example of someone doingbusiness the right way – someone who has used the fundamentalsof a turnaround strategy to not only turn around their business, butalso has taken the advice to heart and institutionalized that knowledgeto build a business that is a recognized successful company eitherin the broad financial markets or within their niche community. Thetypical award winner should have shown three to five years offinancial and other business successes.

The turnaround may or may not have happened with the directhelp of the TMA, but we as TMA members are willing to put our“stamp of approval” on this company and promote it as an exampleof what needs to be done to not only turn a business around, butalso provide it with the tools for “Corporate Renewal.”

The Awards Committee seeks nominations for these awards now.It is easy to nominate: all we need from you at this time is the

name of the company, your brief thoughts and rationale, and yourcontact information. We expect the CEO, senior executive or theowner of the award winner to personally accept the award and tobriefly speak at an awards function TBA. As well, the award-winning company must be prepared to have a case study be writtenand distributed by TMA.

Send your nomination for any of the awards to Dave Mack [email protected] or 847-441-1867, Mitch Rasky [email protected] or 312-904-8858 or Ken Yager [email protected] or 847-304-1103.

2006 Outing Results

Men’s Longest Drive #2 Port – Mike Van EttenMen’s Longest Drive #9 Starboard – Mike O’MalleyLadies Longest Drive #5 Port – Lori StanovichLadies Longest Drive #12 Starboard – Angela HarmonMen’s Closest to Pin #15 Port – Mike Van EttenMen’s Closest to Pin #13 Starboard – John GilLadies Closest to Pin #4 Starboard — Cari JankuskiLongest Putt Made #18 Port – Scott KohlerLongest Putt Made #18 Starboard – Scott Collins

Most Challeneged Team (Port)1. Michael Kempel2. Jay Henry3. Carol Carsella4. Kevin Krakora

Most Challenged Team (Starboard)1. Linda Parck2. Robert Jaskiewicz3. Debbie Sill4. Gail Heldke

Scramble Winners (Port) – Score: 531. Ray Anderson2. Gordy Gouvia3. Ken Kozack4. Duncan Bourne

Scramble Winners (Starboard) – Score: 541. Robert Heinz2. Robert Hinson3. Mark Clark4. Michael O’Neil

Most Lost Balls – Total 101. Angela Harmond2. Bernadette Barron3. Julian Balboa4. Chris Brokmeier

Holi-in-One, #15 Starboard, Par 4Natural Hole-in-One, with no Mulligan, throw or yardstick

Dylan Morgan


Golfers EnjoySuccessfu

On June 14th two 18-hole golf co International Golf Center for t Chapter’s 6th Annual Charity outing supported two outstand

Memorial Hospital and the Make-a-Wishto raising significant dollars for both orghad a great time at a very well organized

From the time golfers arrived, they wersocializing with friends, practice their skior go over to the driving range where onesponsors, SMT Golf, was demonstrating golfers didn’t have their clubs in their hayardsticks. Doesn’t seem like a necessargame of golf, but those who paid the $20 all proceeds going to the two charities) s“extra inches” helped during the course owould have ever thought we’d all welcom

Many thanks to the multiple committeerespective members who helped make thsuccess: The Community Service CommiCommittee and Sponsorship Committee.an outstanding golf outing while raising dorganizations. Congratulations to everyo

We Thank Our Very Generous Auction Donors

Jim Vargo Two tickets to Dr. DoolittleWells Fargo $200 Lettuce Entertain You gift certificaRally Capital Services $200 Luxbar gift certificateMorris-Anderson $200 gift card to Nick’s FishmarketMerrill Lynch Two pairs Maui Jim sunglasses

Two pairs women’s designer PJ’sStout Risius Ross Inc. $250 Peninsula Spa gift certificateSommer Barnard Two - $50 gift cards to StarbucksVedder Price Four White Sox ticketsWildman Harrold Allen & Dixon Four White Sox ticketsBuccino & Associates Inc. $50 gift certificate to Rosebud RestaurantRiviera Finance Four Cubs tickets

Ron Santo autographed photoCIT Business Capital Four Cubs ticketsAssociated Commercial Finance Four dozen golf ball packagesThillman Filippini One week at Wisconsin summer homeCrystal Capital Waterford Crystal martini glassesFuzhen Group Four gift cards for Sona Med Spa, Oak B

Gift certificate for North Shore Day SpaTMA Chicago/Midwest Chapter Four tickets to Mariah CareyMake-A-Wish Foundation DVDs of old moviesAccuval PutterTeamWork Technologies Signed Copy of Recently Published BookChildren’s Memorial Hospital Bowling pin signed by Kerry WoodGolan and Christie LLP Four Cubs tickets

Photos by Kim MetznerThe Collateral Resource Group

Andrea from the Make-A-Wish Foundation was there to help out

Many Thanks To The FollowingSponsors of our

2006 Charity Golf OutingAccuVal Associates Inc.AIC VenturesArnstein & Lehr LLPBowne & Co.Bridge AssociatesBuccino & AssociatesChase Business CreditChicago Capital HoldingsCIT Business CapitalThe Collateral Resource GroupConcord Financial Advisors LLCConway MacKenzie & DunleavyCrystal CapitalDeloitte Services LLPDresner Partners Investment BankingFort Dearborn PartnersFTI ConsultingGetzler Henrich & AssociatesGMAC Commercial Finance LLCGoldberg KohnGould & RatnerGreat American GroupHarney Partners LLCThe Hilco OrganizationHarris NesbittHOMEDIRECTUSA INC.Huron Consulting GroupKaye Scholer LLCLake Pointe PartnersLaSalle Business CreditLoeb Equipment & AppraisalMesirow Financial Consulting, LLCMonroe CapitalMorris-AndersonMuch Shelist Freed Denenberg Ament & RubensteinNassi Group/Tiger Capital GroupNorth Fork Business CapitalPNC Business CreditPrairie Business CreditPresidential FinancialRivieria FinanceSchwartz Cooper CharteredShaw Gussis Fishman Glantz Wolfson & Towbin LLCSMT GolfSommer Barnard PCStout Risius Ross Inc.Summitt FinancialTextron FinancialThilman FilippiniWachovia Capital FinanceWells Fargo Business CreditWildman, Harrold, Allen & DixonWinternitz Inc.


y Yet Anotherul Outing

f courses were filled up at the Harborsideor the TMA Chicago/Midwestity Golf Outing. Once again, this year’sanding charities: The Children’sish Foundation. In additionrganizations, attendees

ed event.ere able to begin

skills on the putting greenone of the new eventng a new driver. If the hands, this year they hadsary accessory for the20 for their yardstick (with) soon realized how thosee of the day —and whoome “extra inches!”

ttee co-chairs and their this annual event a greatmittee, Entertainment

ee. Together, these three groups createdg dollars for two very worthwhileryone!!!!

ate

t

rook

Most Challenged Team (Starboard)

Scramble Winners (Port)

Scramble Winners (Starboard)

The Chicago/Midwest Chapter proudly recognizes the following organizations and their CertifiedTurnaround Professionals (CTPs)AEG Partners LLCLawrence Adelman

Alert Consultants Inc.James Rubenstein

AlixPartners LLCRonald BieniasJohn DischnerMichael Feder

ALTMA Group LLCMurray LessingerDave Mack

Alvarez & Marsal Inc.Brian Whittman

Arbor Point PartnersRobert Deprez

Atlas Partners LLCBiff Ruttenberg

BBK LtdPeter PappasRobert Webb

Burnham Venture Management Ltd.Ray Anderson

Capital Flow Corp.Russ Jensen

Capstone Advisory Group LLCJeffrey Hyland

Cerberus Capital ManagementMatthew Niemann

Chartered Management CompanyWilliam Avellone

Condor Financial Group Inc.Gilman King

Conway, MacKenzie & DunleavyFrank MackJoshua SianoJeffrey Zappone

Copperfield Chimney Supply Inc.Michael Barry

Cosi Inc.William Forrest

DeloitteThomas Williamson

David C Finkbiner & Co. SCDavid Finkbiner

FTI Consulting Inc.Kevin KubyColleen Lowmiller

FTI Palladium PartnersMichael Buenzow

Gandhi ConsultingKiran Gandhi

Heartland Capital LLCTimothy Czmiel

Help at Home Inc.Barry Shear

High Ridge PartnersFrank Wojtowicz

Huron Consulting GroupThomas AllisonPaul RundellAnu Singh

Kugman AssociatesSamuel Williams

Kutchins, Robbins, Diamond Ltd.Allen Kutchins

Lake Pointe Partners LLCDavid AllenRandall Wright Patterson

Lighthouse Management GroupMark Allen

Moglia AdvisorsAlan Samsky

Morris-Anderson & Associates Ltd.David AndersonDavid BagleyBernadette BarronDaniel DooleyRobert Haldi

Morris-Anderson & Associates Ltd.Larry HennessyMichael JakolatRobert MorrisWilliam Van Der WeeleRobert Wanat

Promontory Point PartnersJeff Vogelsang

ReeseMcMahon, LLCSandra Reese

Shepherd Partners Inc.Tony Natale

TeamWork Technologies Inc.William Hass

The Belet GroupJacques Belet III

Vector Consulting LLCMichael Baratta

Duncan Bourne


Another Benefit for CertifiedTurnaround Professionals

Attention all new Certified Turnaround Professionals!Pass the CTP exam and get your certificate framed. That’sright, the Chicago/Midwest TMA Chapter wants you to

proudly display your new accomplishment, and toaccomplish that, you will need a nice, new frame for your office wall.

If you’ve recently passed the CTP exam, please contact Chris Glatz at(815) 469-2935 or [email protected] for details.

The More You Know…Did you know that if you pass the Certified Turnaround Professional(CTP) exam, you receive a free membership to the TurnaroundManagement Association (TMA)?

As if the benefit of joining the high ranks of current CTP members werenot enough, as a member of the TMA you have the opportunity tonetwork with other industry professionals and participate in conferencesand programs that further educate you on the current happenings in theturnaround community.

For more information, please contact Nicole Gibby at (312) 578-6900.

Liquidity: It’s all RelativeBy (the prolific) Kenneth Yager II, Morris Anderson & Associates

I have struggled the last year with all the good news in the media: unemployment and interest rates are still low and “core” inflation, what ever that is, remains low. While resting on this bed of nails, I try to think through the scenarios towards an eventual economic downturn. Each time I am vexed by the monster liquidity in the market and

the thought of the verylarge-brained individualswho have already amassedbillions of dollars andmanpower to provideoptions to anyone who hasso much as a whisper of aproblem.

How is an honest andhard-working tradesman likeme (consultant or lawyer)supposed to make a living atthis chosen profession withall this liquidity?

But then hope springs eternal. I remain steadfast in myprediction about the end of this economic cycle (those thoughtsare for another article). But, more important than “when” is thequestion of “if.” That is a question that I have pondered for sometime. The “if” became a question of liquidity—there appears to beno end to the liquidity in this market. And while I could reach forthe old familiar axioms for solace—that the money will eventuallydry up and we will have a broad economic down-turn, I am jarredto reality by the barrage of new forms of liquidity that have hit themarket. These new life forms have not been through a down-turnto be sure, but they say they are ready for the fight. Given some ofthe activity I have witnessed, I tend to agree. How depressing.They have the money and the talent to not only weather a down-turn, but they are looking forward to it!

However, these thoughts do not end in a nightmare. There isgood news. Where I draw my strength from is a simple yetpowerful idea: relative liquidity. Yes there is a lot of moneychasing deals, good and bad. But, to paraphrase Einstein, thethinking that got us into this situation is not the level of thinkingthat will solve the problem. The level of liquidity today is stunningand likely in many ways not to change a lot. Like the waves ofliquidity before this one, capital seeming grows larger over time.But all things are relative. We have a base of private marketliquidity that is higher than ever before, but when the news turnsbad, that relative liquidity will turn relatively bad. Money will notswoop in to take away the problems. It will be relatively tied up. Itwill be relatively small in comparison to the problem.

This theory has been tested time and again. The money-peoplereinvent the money and the money pours into the market, but eachtime the money-people over-pour. So, I sleep well these daysreminding myself that this liquidity is relative…we are creating aproblem bigger than our collective checkbook and we will have tothink our way as usual and not buy our way out of this down-turn.Sleep well and happy hunting, TMA’ers!

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Chicago Chapter Member News


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Sid LamberskySid LamberskySid LamberskySid LamberskySid Lambersky has joined Morris-Anderson & Associates as a ManagingDirector. He brings more than three decades of retail, marketing andfinancial expertise to his position.

Bob Bob Bob Bob Bob WWWWWujtoujtoujtoujtoujtowiczwiczwiczwiczwicz recently joined the new Chicago-based mid-marketinvestment banking firm, InterOcean Financial Group LLC. Prior tojoining InterOcean, Bob was with Giuliani Capital Advisors as ManagingDirector in the M&A Group and leader of their Metals Team.

Marjorie DunnMarjorie DunnMarjorie DunnMarjorie DunnMarjorie Dunn, who recently joined Morris-Anderson & Associates, hasbeen promoted to Manager of Marketing and Communications. Margieis also a new member of the TMA Chicago/Midwest Chapter.

Focus Management GroupFocus Management GroupFocus Management GroupFocus Management GroupFocus Management Group, announced that effective July 1 its Chicagopractice was relocated to a newly acquired building on Avondale Avenuein Chicago. The move into the new larger premises is in recognition of thefirm’s rapid expansion and is aimed to accommodate its future growthplans.

Congratulations to the TMA NTMA NTMA NTMA NTMA National Oational Oational Oational Oational Office and Leadership ffice and Leadership ffice and Leadership ffice and Leadership ffice and Leadership TTTTTeameameameameam –the TMA was recently awarded ASAE’s (American Society of AssociationExecutives) Association Advance America (AAA) Award for the success ofthe TMAssist PTMAssist PTMAssist PTMAssist PTMAssist Prrrrrogramogramogramogramogram. This award is presented throughout the year torecognize associations that propel America forward with innovative projectsin skills training and development, ethical, technical or professionalstandards; public education and many other focused areas.

Morris-Anderson & Associates Principal and TMA Chicago/Midwest 2005President Dan DooleyDan DooleyDan DooleyDan DooleyDan Dooley recently penned “Can My Business Survive theCrisis?” that ran in the June/July issue of the AIRA Journal. Dan’s speakingengagements include the New Orleans TMA/ACG Luncheon on June6th, where he spoke on the issue of “Unique Issues Affecting FamilyBusinesses” and the 13th Annual Central States Bankruptcy Workshop,which was held at the Grand Traverse Resort and Spa June 15-18 inTraverse City, MI where he spoke on the issue of “Deepening Insolvency.”

Preventive Crisis Intervention (PCI) is pleased to announce that RonRonRonRonRonJJJJJodloodloodloodloodlowskiwskiwskiwskiwski, Senior Business Advisor, has successfully completed a two-year program and received his MBA from Northern Illinois University.

TTTTTracy racy racy racy racy TTTTTrrrrregeregeregeregereger has become Vice President and Assistant General Counselof Ridge Property Trust, a Private Real Estate Investment Trust formedbetween Ridge Investors, LLC (Management) and Prudential Real EstateInvestors. Ridge is a leading provider of corporate real estate development,investment, and financing services specializing in “state of the art”warehouse, distribution and manufacturing facilities throughout theUnited States and Mexico.

Lee A. GLee A. GLee A. GLee A. GLee A. Gouldouldouldouldould and MMMMMichael D. Pichael D. Pichael D. Pichael D. Pichael D. Pakterakterakterakterakter are pleased to announce thatAndrea M. Katzenstein (University of Illinois, B.S in Finance andManagement), Diana Talpa (John Carroll University, B.S. in Finance)and Todd D. Rathbun (Loyola University, B.S. in accountancy) havejoined Gould & Pakter Associates LLC.

Carl S. LaneCarl S. LaneCarl S. LaneCarl S. LaneCarl S. Lane, a principal in the Reorganization Services Group ofDeloitte Financial Advisory Services LLP and Harold D. IsraelHarold D. IsraelHarold D. IsraelHarold D. IsraelHarold D. Israel, counselin the Business Reorganization and Creditors’ Rights Department ofKaye Scholer, co-authored an article in the July 28 edition of the DailyBankruptcy Review titled, “The Market Responds to Code Changeswith Fewer Reorganizations.” This article compares cases filed after theeffective date of the new Bankruptcy Code with those filed in the 20months before the effective date. They concluded that Chapter 11casesfiled after the effective date were more likely to be prepackaged/prearranged plans of reorganization or first-day sales of substantially allof their assets compared to “traditional” reorganization cases filed beforethe effective date.

Terence Gordon is pleased to announce that DDDDDavid Christianavid Christianavid Christianavid Christianavid Christian hasjoined Seyfarth Shaw in the Chicago office as a partner in the BankruptcyPractice Group.

Brad A. BerishBrad A. BerishBrad A. BerishBrad A. BerishBrad A. Berish, of Adelman & Gettleman, Ltd., co-authored with hispartners, Chad H. Gettleman and Adam P. Silverman, a recentlypublished IICLE (Illinois Institute for Continuing Legal Education)chapter entitled “Representing the Secured Creditor and AdequateProtection,” which appears in the 2006 IICLE book on BusinessBankruptcy Practice.

CIT Group Inc. announced that Allan AllweissAllan AllweissAllan AllweissAllan AllweissAllan Allweiss has joined thecompany as Executive Vice President and Midwest regional managerfor its CIT Business Capital unit. Based in Chicago, Allweiss isresponsible for business development, client retention and creditquality across 11 Midwestern states.

Howard MullinHoward MullinHoward MullinHoward MullinHoward Mullin has been named Executive Vice President of FordhamFinancial Services, an asset-based lender headquartered in Northbrook. The Company provides loans to middle-market companies throughoffices located in Northbrook, Toledo, San Francisco, and Phoenix.

Jack B. Fishman, EsqJack B. Fishman, EsqJack B. Fishman, EsqJack B. Fishman, EsqJack B. Fishman, Esq., Executive Managing Director of bankruptcyAdvisory Services (f/k/a Novare, Inc.), a subsidiary of EPIQ Systems,Inc., was a panelist for a New York Institute of Credit program on May17, in New York City. The topic was Coping with Bankruptcy Reform.

Bob MorrisBob MorrisBob MorrisBob MorrisBob Morris of Morris-Anderson & Associates recently served on apanel at the TMA Great Lakes Regional Conference in Western NY.The panel discussed “Pension and Deferred Benefit Issues: The PensionDilemma in America.” Bob also spoke at the AIRA Annual Conferencein Seattle as a panelist discussing the topic, “Evolution of BusinessTurnaround, Restructuring and Advisory Firms.”

On the heels of celebrating his 20-year anniversary with real estateadvisory firm Studley, DDDDDavid J. Gavid J. Gavid J. Gavid J. Gavid J. Gelfandelfandelfandelfandelfand has been promoted to executivemanaging director in the Chicago office. Since joining the tenant advisoryfirm in 1986, Gelfand has represented firms in more than six millionsquare feet of transactions valued at nearly $1.1 billion.

Bob JordanBob JordanBob JordanBob JordanBob Jordan of Interim CEO announced that they have added partnersin Paris and Shanghai, giving them access to great interim leadershiptalent in Europe and Asia! The interimCEO, Inc. team is now 75players strong.

Lake Pointe Partners LLC is pleased to announce that Cheri AndersonCheri AndersonCheri AndersonCheri AndersonCheri Andersonhas joined its Chicago office as Director of Marketing. Cheri, previouslywith a national consulting firm, currently serves as TMA Chicago/Midwest’s Communications Committee co-chair and Chair of IWIRCChicago.

We also welcome the following new members to the TMA.

Greg AndricopulosJulian Balboa, Prestige CapitalMark Blocker, Lockton CompaniesChristopher Casey, Stout Risius RossMarjorie Dunn, Morris-Anderson & AssociatesMichael Fenerty, Century Business Investment Inc.Eric Goehausen, Goehausen Associates Inc.Craig Graff, Silverman ConsultingBrendan Green, Cook Financial LLCJamie Hadac, Foresite Realty PartnersNeal Hermanson, The LaSalle NetworkAnne Huber, Kirland & Ellis LLPLinda Imonti, KPMG LLPBrian Jablon, CIT GroupStacy Karamanos, FTI ConsultingMarc Kieselstein, Kirkland & Ellis LLPThomas Kurtz, Textron FinancialAmanda Lewis, IntraLinksKenneth Malek, Navigant Capital Advisors LLCWilliam Marra, Fort Dearborn PartnersKrysten Matlawski, Mesirow Financial ConsultingTamara McKinney, The Constant Group Inc.Catharon Miller, Lone Star FundsKevin Montague, Alix Partners LLCPatrick O’Callaghan, Business Loan ExpressLinda Peddle, GE CapitalTodd Plugge, High Ridge PartnersMark Rajcevich, FTI Consulting Inc.Robert Seeds, International Financial Services CorporationDavid Seligman, Kirkland & Ellis LLPJoshua Slayton, Conway MacKenzie & Dunleavy InternMorgan Smith, Schwartz Cooper Greenberger & KrausAaron Smith, Lord Bissell & Brook LLPNeema Thachet, Huron Consulting GroupJames Vaughn, Euromonitor InternationalRichard Weil, AIC VenturesKim Whittaker, First National Technology SolutionsJames Xiao



What’s the Deal?Doing Business in Chicagoland and the Midwest

Suzanne Koenig of SAK Management Services LLC has beenappointed with a management contract for Changing SeasonsHealthcare, a 183-bed skilled nursing facility in Everett,Massachusetts, by the American Health Foundation of Dublin,Ohio.

Monroe Capital LLC announced the funding of a new $30 millioncredit facility for AMB Tran Group, Ltd. Monroe Capital acted assole arranger and agent of a (i) $5 million senior secured revolvingcredit facility; (ii) $15 million senior secured term loan; (iii) $2million capital expenditure term loan facility; and (iv) $8 millionjunior secured term loan. Proceeds of the new credit facility wereused by the borrower to refinance its existing indebtedness andassist in a dividend recapitalization of the company.

Hilco Equity Partners L.P. and Pfingsten Partners, L.L.C. jointlyannounce the sale of Rx Label Technology Corporation, theleading producer of pressure-sensitive prescription labels for theU.S. retail pharmacy market, to print and visual communicationscompany Cenveo, Inc.

Concord Financial Advisors LLC closed an $8.65MM transactioncomprised of a $7.0MM Revolving Line of Credit to supportworking capital and a $1.65MM Term Loan to refinance existingdebt for a $30.0MM Importer and Distributor of Dutch NoveltyFlowers located in Florida. Concord served as exclusive FinancialAdvisor to both Companies.

Bibby Financial Services (Midwest) has expanded their localpresence and refined product offerings. In addition to Chicago, St.Louis, Cleveland, and Minneapolis, they have focused theirattention on Michigan, with financial expert Gordon Trask as theirnew VP of Sales and Marketing. Bibby also plans to launch a BankProgram that allows the option for banks to earn fees, retain lockboxfacilities of referred clients, and participate into transactions, inaddition to offering private label services.

Great American Group is performing store-closing sales forLouisiana-based furniture chain Kirschman’s. All 5 locations(Metairie, Covington, Baton Rouge, Gulfport, and West Bank) havebeen acquired by Rooms To Go. RTG plans to convert the stores tothe Rooms To Go nameplate and has enlisted Great American Groupto assist with the liquidation of inventory.

David C. Finkbiner & Company S.C. recently led a $25 millionWisconsin petroleum cooperative through a severe financial crisis,stabilization and $5 million bank restructuring. The Coop’s


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operations consisted of retail C-stores, bulk oil and L-P gasdistribution. The engagement included a viability analysis,development of an operational and financial turnaround plan, andsecuring financing.

Signature Credit Partners, LLC, an affiliate of Signature CapitalPartners LLC, acquired an $11,260,000 pool of vendor financingloans and equipment leases to nine independent commercialprinters originated by Man Roland, Inc.

Big Lots Capital Inc.’s Vice President Seth Marks recentlypurchased 25,000 West Coast Copper bicycles from HuffyCorporation. The cash deal was a result of a referral to Mr. Marksfrom Huffy’s turnaround consultants and lenders. Thistransaction was recently featured in The New York TimesMagazine’s article, “Misses and Hits.” The bicycles total over$1.5 million dollars at Big Lots’ retail. Big Lots Capital purchasesconsumer product inventories from companies and lenders duringtimes of growth, restructuring and change.

David Gelfand, senior managing director at Studley (a real estateadvisory firm), represented American Capital Strategies, Ltd.) apublicly traded buyout and mezzanine fund with capital resourcesof nearly $7 billion, in a 27,800-square-foot relocation to the entire40th floor of 111 South Wacker, one of Chicago’s newest WestLoop class-A buildings.

Congratulations to Faye Feinstein of Quarles & Brady LLP, whosuccessfully obtained a modification of the automatic stay in aChapter 11 Bankruptcy involving a 35-story office building in theLoop. Faye persuaded the Court and the Trustee that there wasno equity in the property above the $22.3 million due their client,John Hancock Life Insurance Company.

Tom Jones of Concord Financial Advisors LLC announced theclosing of a $22.0MM Senior Secured Revolving Line of Credit tosupport working capital, including a $2.0MM seasonal over-advance, for a $50.0MM manufacturer and distributor offragrances and colognes located in Florida.

Suzanne Koenig of SAK Management Services LLC purchasedLena Living Center LLC, a 92- bed Intermediate-Care Nursingfacility and the Doll Memorial Apartments, a 16-unit SeniorIndependent Living Apartment complex located in Lena, Ill. Theplan is to convert the Nursing Facility to a skilled Medicare facilitythis year, thereby increasing its occupancy and reimbursement,which will ultimately increase its bottom line.

Distressed Advisory Services

Please contact: Timothy F. Cummins at 312.752.3305 or [email protected] Richard J. Flynn at 312.752.3324 or [email protected] Robert A. Lack at 312.752.3351 or [email protected]

• §363 Sales• Financings (Debt, Equity, DIP)• Out-of-Court Restructurings• Debtor Representation• Creditor Representation• Other Special Interest Representation• Crisis Management

• Supply Chain Risk ManagementSM

• Financial Due Diligence• Operational Due Diligence• Litigation Advisory• Expert Testimony• Fairness Opinions• Business and Asset Valuations

The professionals at Stout Risius Ross have significant experience advising clients in distressed situations. SRR’s expertise spans a broad spectrum of engagements including:

www.srr.comInvestment banking services provided through Stout Risius Ross Advisors, LLC, member NASD. All other services provided through Stout Risius Ross, Inc.

Assignment for the Benefit of Creditors:An Alternative to Bankruptcy

By Mark Leipold, Gould & Ratner

Some businesses cannot continue to operate and must therefore be sold or liquidated and the proceeds distributed to creditors. An Assignment for the Benefit of Creditors (hereinafter an “Assignment”) is a well-established common law tool that is

an alternative to bankruptcy that provides a benefit both to troubledcompanies and presents an opportunity for potential buyers.

Assignments are structured to save time and expense in concludingthe affairs of an insolvent company. Through an Assignment, theinsolvent company’s assets can be sold quickly and efficiently, andthe liquidation proceeds can be distributed to creditors shortlythereafter. In general, after the secured creditor, tax and wage claimsare paid next. Secured creditors frequently find an Assignment useful,because the secured creditor is relieved of the legal costs and risksassociated with the foreclosure and sale of its collateral. Securedcreditors may be willing to allow some portion of the proceeds of itscollateral to pay the fees and costs of the Assignee, as well as tax andwage claims.

Similar to a Chapter 7 CaseAn Assignment is analogous to a Chapter 7 liquidation proceedingunder the Bankruptcy Code. An Assignment is simply a contractwhereby the troubled entity (“Assignor”) transfers legal and equitabletitle, as well as custody and control of its property, to a third party(“Assignee”) in trust, to apply the proceeds of the liquidation of the

assets to the Assignor’s creditors in accord with priorities establishedby law. However, unlike a Chapter 7, an Assignee can elect to keep thebusiness operating while it tries to sell the company as an operatingbusiness.

An Assignee is generally an individual. The Assignee is charged withthe responsibility of gathering all of the Assignor’s assets and sellingthe Assignor’s right, title and interest in those assets. The Assigneehas a fiduciary duty to all creditors. The Assignor must turn over andassign all right, title and interest in its assets to the Assignee, togetherwith a complete listing of all creditors, their addresses and the amountof indebtedness shown on the debtor’s books and records. TheAssignee is required to give notice of the Assignment to the creditorsand invite each creditor to file a claim in the Assignment estate. Thenotice may provide a “bar” date, by which all claims must be filed. After the bar date, the Assignee will reconcile the claims and object tothose deemed to be improper.

Liquidation of AssetsAs a general rule, the Assignee will assemble the Assignor’s assetsand advertise an auction sale. The assets will be liquidated eitherpiecemeal or in bulk; whichever will yield the highest price. Circumstances may arise when a buyer exists for the entire asset pooland the Assignee is convinced that the price the buyer is willing to payreasonably exceeds that which can be obtained at auction or in abankruptcy trustee’s sale. An Assignee will generally obtain at leastone liquidation appraisal and if the sale price being offered exceeds theappraised liquidation value by a reasonable amount, the Assignmentand immediate sale of the assets will go forward.


Fees and Costs of an AssignmentIn general, the fees and costs associated with an assignment are aboutthe same as a Chapter 7 bankruptcy case. In an Assignment, theAssignor pays the fees and costs of its professionals. These includethe fees and costs of an attorney experienced in insolvency matters.The Assignor’s attorney is retained to evaluate the financial situationof the business and consider the various options available. If anAssignment is to be the course of action, the attorney will assist theAssignor in selecting an independent Assignee and the preparationof the Assignment documents. The Assignee’s fees and costs arepaid from the proceeds of the sale of the assets. In general, the Assigneewill prepare the Assignment documents.

Right, Title and InterestThe buyer of the assets will receive an Assignee’s bill of sale,establishing that the buyer has received the Assignee’s right, title andinterest in the purchased assets on an “AS IS, WHERE IS” basiswithout any warranties, representations or covenants. The buyer atan Assignee’s sale is best advised to obtain a thorough lien searchbefore consummating such a purchase, because the sale is free andclear of only known liens, claims and encumbrances and there aresufficient assets to satisfy these claims, or the buyer and the claimantenter into a settlement. This differs from bankruptcy in that the assetscan be purchased through a bankruptcy sale free and clear of all liens,claims and encumbrances notwithstanding the purchase price or theagreement of the claimants. Even if the Assignee is willing to give thebuyer a warranty, a representation or covenant, the Assignee liabilityis generally limited to the proceeds of the sale. If the breach of any ofthe foregoing is not discovered until after the assets are liquidated and

disbursed, the Assignee will not have any funds to pay any damages.In some instances, if the Assignee’s conduct amounts to grossnegligence or willful misconduct, a court may require the Assignee topay claims from its own resources.

Assignment for the Benefit of Creditors: Preservation of ValueGoodwill may be a significant asset whose value can be realized onlythrough the sale of the business as a going concern. In fact, manypotential buyers are located prior to the Assignment. An assigneemay also operate a business for a short period of time in hopes oflocating a buyer for purposes of selling the company as a going concern,and/or conduct an orderly liquidation of the debtor’s assets that wouldmaximize the value over a straight public auction. A Chapter 7 Trusteehas no incentive to undertake this type of extra work or spend the timeand money required seeking court approval to pursue this type ofturnkey sale.

Risk FactorsOne of the risks inherent in an Assignment is that three unsecuredcreditors of the Assignor might file an involuntary bankruptcyproceeding. However, many bankruptcy courts will abstain fromexercising jurisdiction over the case and will dismiss it if the Assigneecan establish that the Assignee’s administration of the estate iscompetent and continued administration by the Assignee will bestserve the interests of the creditors.

Mark Liepold is a Partner in Gould & Ratner’s Creditors’ Rights andBankruptcy Group. Mark may be contacted at 312/899-1651 or byemail at [email protected].

The HilcoHilcoHilcoHilcoHilco Organization

The Hilco Organization (“Hilco”) provides asset appraisal,

acquisition, disposition and financing services to an international marketplace through multiple specialized business units. Each business provides a specific set of

services pertaining to certain asset categories. This permits Hilcoto provide clients with a completely integrated, single-sourcesolution. Hilco serves retailers, wholesalers, distributors andmanufacturers, direct and through their financial institutions andconsulting professionals. Hilco also serves private equity andhedge funds, and investment banking firms.

Hilco Appraisal Services, LLC specializes in valuations ofinventory, machinery and equipment, intellectual property and fullenterprises at the manufacturing, wholesale/distribution and retaillevels.

Hilco Merchant Resources, LLC provides retail store closing andin-store consumer products inventory disposition services tohealthy retailers as well as those involved in restructuring orbankruptcy.

Hilco Wholesale, LLC buys, sells and brokers bulk consumerproducts inventory held at the wholesale or distribution level.

Hilco Industrial, LLC disposes of industrial inventory, machineryand equipment found in manufacturing, wholesale and distributioncompanies. Hilco Industrial provides on-site and webcastauctions, and negotiated sales.

Hilco Real Estate, LLC provides property disposition, leasetermination and mitigation services. The company also acquiresfee and leasehold properties, does sale/leaseback transactions,and provides full MAI-certified appraisals.

Hilco Receivables, LLC purchases and services distressed A/Rportfolios from a variety of sources including commercialbusinesses, banks, retailers, telecom companies, healthcareorganizations, etc. The company also provides appraisals ofaccounts receivable portfolios.

Hilco Financial, LP provides bridge loans to facilitate mergersand acquisitions. The company also purchases secureddistressed debt from senior lenders and can provide mezzanine,junior secured and senior bridge loans on a one-off basis at therequest of a senior lender.

Hilco Equity, LLC, which currently manages approximately $73million in committed capital, is a private equity investment firmfocused on middle market companies.

Hilco Online, LLC, provides highly-specialized, 24/7 onlineauctions and online stores to affect the sale of capital assets.



Turnaround Management AssociationChicago/Midwest Chapter

2006 Board of Directorsand Steering Committees

OfficersPresidentWilliam J. HassTeamwork Technologies [email protected]

President-ElectLisa N. JohnsonWells Fargo Business [email protected]

Vice President-ProgramsNorman B. NewmanMuch [email protected]

Vice President-CommunicationsJoseph J. FobbePNC Business [email protected]

Vice President-Community Serv.Thomas E. PabstGreat American [email protected]

SecretaryGail D. HeldkeWells Fargo Business [email protected]

TreasurerCarl LaneDeloitte Financial Advisory Services [email protected]

AdministratorChristine M. GlatzManagement [email protected]

Ex-OfficioPast PresidentDaniel F. DooleyMorris-Anderson & Associates [email protected]

DirectorsRobert A. MorrisMorris-Anderson & Associates [email protected]

Sid LamberskyMorris-Anderson & Associates [email protected]

Thomas E. JonesConcord Financial Advisors312-663-6684 [email protected]

Chad PetersonBridge Associates [email protected]

Kimberly A. MetznerThe Collateral Resource Group [email protected]

Mark K. GertzofMerrill Lynch [email protected]

Harold D. IsraelKaye Scholer [email protected]

Kelly T. FrankAuction Services [email protected]

Kevin A. KrakoraMesirow Financial Consulting [email protected]

Committee ChairsAwardsDavid E. MackALTMA Group [email protected]

Mitchell B. RaskyLaSalle Business [email protected]

Ken YagerMorris-Anderson & Associates [email protected]

Breakfast ProgramsHarold D. IsraelKaye Scholer [email protected]

Thomas E. PabstGreat American [email protected]

Chad PetersonBridge Associates [email protected]

CommunicationsCheri AndersonLake Pointe Partners [email protected]

Joanne C. Chamberlain [email protected]

Joseph J. FobbePNC Business [email protected]

Mark LeipoldGould & [email protected]

Community ServiceJonathan BloomHilco [email protected]

Al DeGuzmanPNC Business [email protected]

Jim VargoThe Bekins Acquisition [email protected]

Continuing EducationRay AndersonBurnham Ventrue [email protected]

Frank MackConway, MacKenzie & [email protected]

Anu R. SinghKaufman [email protected]

CTP RelationsBernadette M. BarronMorris-Anderson & Associates [email protected]

Duncan S. BourneWynnchurch [email protected]

Randall Wright PattersonLake Pointe Partners [email protected]

EntertainmentJeffrey S. HylandCapstone Advisory [email protected]

Suzanne KoenigSAK Management Services [email protected]

Jason LeuvoyPresidential Financial Corporation ofthe [email protected]

FinancialMark K. GertzofMerrill Lynch [email protected]

Drew CardonickGoldberg [email protected]

Sid LamberskyMorris-Anderson & Associates [email protected]

Special ProgramsFrank MelazzoGetzler Henrich & [email protected]

Robert A. MorrisMorris-Anderson & Associates [email protected]

Norman B. NewmanMuch [email protected]

SponsorshipTeresa B. GerlachNorth Fork Business Capital [email protected]

Thomas E. JonesConcord Financial [email protected]

Thomas F. ThompsonPNC Business [email protected]

Web SiteKelly T. FrankAuction Services [email protected]

Michael L. [email protected]

Women’s GroupGail D. HeldkeWells Fargo Business [email protected]

Kimberly A. MetznerThe Collateral Resource Group [email protected]

Patricia M. WuGreat American [email protected]

Carl LaneDeloitte Financial Advisory Services [email protected]

Raymond M. NeihengenALTMA Group [email protected]

Future LeadersBarry W. DubinKellogg Graduate [email protected]

Jason EdelsonTranscap Trade Finance [email protected]

Bill HackneyMuch [email protected]

Inter-ChapterPaul E. KrantzGMAC Commercial [email protected]

Howard J. MullinMorris-Anderson & Associates [email protected]

William ReimnitzRiviera [email protected]

MembershipDavid BogetzBurnham Capital Partners [email protected]

Bob HandlerCommercial Recovery Associates [email protected]

Thomas E. JonesConcord Financial Advisors312-663-6684 [email protected]

Kevin A. KrakoraMesirow Financial Consulting [email protected]

Milwaukee ProgramsMichael R. CollotonFirst Business Capital [email protected]

Bob OllhoffM & I [email protected]

Philip L. OstroskiAssociated Commercial [email protected]

Daniel G. QuirkAccuVal Associates [email protected]

ParliamentarianChristopher J. HorvayGould & [email protected]

Pro BonoHarry R. NovakBuccino & Associates [email protected]

David D. OnionChicago Capital Holdings [email protected]

James M. RubensteinAlert Consultants [email protected]

Public RelationsMichael BanCapital TempFunds [email protected]

SD Retail Consulting, LLC, developscustomized business solutions for retailersthat produce a high, positive impact on R.O.I.Services focus on store operations,workforce management, headquarterseffectiveness, supply chain optimization,customer experience enhancement and retaildesign/new concept development.

Hilco Europe. Hilco provides the full rangeof appraisal, asset disposition and distresseddebt-buying services in the United Kingdomand continental Europe through HilcoAppraisal Europe, Hilco Industrial Europe,Hilco UK Limited and Hilco ReceivablesEurope.

Contact Information

International Headquarters:5 Revere Drive, Suite 206Northbrook, IL 60062 USA

Toll-Free Phone: 1-800-52-HILCOPhone: 847-509-1100Fax: 847-509-1150Web: www.hilcotrading.com

The Newsletter ofCorporate Renewal

Ad Rates

Full Page – $875Half Page – $500

Quarter Page – $315Eighth Page – $190

The Newsletter of Corporate Renewal isdistributed five times annually through-

out the midwest to executives andprofessionals in the turnaround arena.

For more information regardingplacing an ad in this publication,

please call:

Chris Glatz, [email protected]

orMark Leipold, [email protected]


Membership ApplicationName:

____________________________________________________

Title:

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Firm:

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Address:

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City: ___________________ State: __________

Zip: __________

Phone:_____________________

Fax: ______________________

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Membership Category:::::

AnnualMid-year Year End(7/1-8/31)* (9/1-11/30)**

Member #$ $275 #$ $150* #$ $375**Academic/Govt. #$ $115 #$ $115* #$ $150**Student #$ $ 65 #$ $ 65* #$ $ 85**

* New members only; does not include Directory listing** Year end dues expire 12/31/06Memberships are on an individual basis only and are non-transferable.Membership includes a listing in the 2005-06 Directory of Members andServices.

Method of Payment (check one):#$ Visa #$ MasterCard#$ American Express #$ Check

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Preferred Chapter::::: Chicago/Midwest

Turnaround Management Association100 South Wacker Drive, Suite 850Chicago, Illinois 60606

Phone: 312/578-6900Fax: 312/578-8336E-mail: [email protected]

Join for only $150(thru August 31st)

The Chicago/Midwest Chapter of TMA thanks the following 2005-2006 Platinum and Gold Sponsors

Gold Sponsors

Christine Glatz, chapter administratorP.O. Box 33Frankfort, IL 60423815- 469-2935 Fax 815-469-1901E-mail: [email protected]

PresortedFirst Class

U.S. PostagePAID

Permit 102Northfield IL

AccuVal Associates Inc.

ALTMA/White Oak Group

Atlas Partners LLC

Back Bay Capital Funding LLC

BBK

Bridge Associates LLC

Buccino & Associates Inc.

Chase Business Credit

Chicago Capital Holdings LLC

Deloitte Financial Advisory Services LLP

Fort Dearborn Partners Inc.

Gardner Carton & Douglas LLP

Getzler Henrich & Associates LLC

Goldberg, Kohn, Bell, Black,

Rosenbloom & Moritz Ltd.

Gould & Ratner

Impact Group Inc.

Lincoln Partners LLC

Mesirow Financial Consulting LLC

Schwartz Cooper Greenberger &

Krauss Chtd.

Stout Risius Ross Inc.

Textron Financial

Welcome Association for

Corporate Growth Chicago

Chapter Members. You have

been included in this compli-

mentary issue of The Newsletter

of Corporate Renewal because

of our shared interests. We

hope you enjoy it. Please note

our event schedule on page two

and join us at any of our

upcoming meetings. We look

forward to seeing you.

Platinum Sponsors

The Newsletter of CORPORATE RENEWAL · Call Mike O’Malley at 312-845-4457, Gail Heldke at...

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Transcript of The Newsletter of CORPORATE RENEWAL · Call Mike O’Malley at 312-845-4457, Gail Heldke at...