Restructuring Recap - 12.6.15

1 www.acm-partners.com

“Circumstances are beyond human control, but our conduct is in

our own power.”

― Benjamin Disraeli

2 www.acm-partners.com

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Three years into the tenure of CEO Marissa Mayer, who was explicitly brought in as a change agent, the Yahoo board of directors, displeased with the declining fundamentals in Yahoo’s core business, is taking a more active role in assessing the options facing the company.

Insiders report that the idea of selling off Yahoo’s core business, which was floated early last week, is still not the favored solution, but as a planned spinoff of Yahoo’s Alibaba stake moves forward, Yahoo CEO Marissa Mayer will need to show progress on her turnaround of the company in order for Yahoo to justify its continued independence.

Yahoo Board, Sticking by Mayer, to Decide on Spinoff by End of Weekend

www.acm-partners.com

See full story in Recode (here)

Kara Swisher (@karaswisher)

http://qz.com/564885/is-marissa-mayer-to-blame-for-yahoos-failed-comeback/

http://recode.net/2015/12/04/yahoo-board-sticking-by-mayer-to-decide-on-spinoff-soon/

https://twitter.com/karaswisher

https://twitter.com/karaswisher

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The long and winding path to an $8 billion debt restructuring for the Puerto Rico Electric Power Authority (known as Prepa), illustrates many of the challenges that will face the island commonwealth as it seeks to restructure $70 billion in debt without access to the U.S. bankruptcy process.

Puerto Rico's Stalled Electric Deal Shows Long Path to Shed Debt


See full story in Bloomberg (here)

http://www.bloomberg.com/news/articles/2015-12-02/puerto-rico-s-stalled-electric-deal-shows-long-path-to-shed-debt?utm_content=buffer978b2&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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“Distress” in US Corporate Debt Spikes to 2009 Level


See full story in Wolf Street (here)

A shift in market sentiment, combined with rapidly deteriorating fundamentals in the energy and mining sectors, is leading to a spike in distress levels across corporate America.

http://wolfstreet.com/2015/12/02/distress-in-corporate-debt-spikes-to-september-2009-level/?utm_content=buffer012cb&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

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In a disappointing conclusion to the largest buyout of the last merge boom, U.S. Bankruptcy Judge Christopher Sontchi approved the plan of reorganization of Energy Future Holdings, which was saddled with $42 billion in debt after a 2007 buyout.

As a result of the company’s byzantine capital structure, Energy Future Holdings’ bankruptcy was particularly contentious, highlighting the accomplishment of getting to an approved exit plan.

Energy Future's bankruptcy exit plan approved by court


See full story in Reuters (here)

http://www.reuters.com/article/energyfuture-bankruptcy-idUSL1N13S21G20151203#O28WXsVKTlVbKhKf.97

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Building materials company Axion International is seeking DIP financing to support operations until a 363 sale can be completed.

According to CFO Donald Fallon, absent the protections afforded by the bankruptcy process, Axion would have been forced to liquidate.

Axion International To Sell Assets in 363 Sale


See full story in CFO (here)

http://ww2.cfo.com/bankruptcy/2015/12/axion-international-sell-assets-363-sale/

• David Johnson is a founding partner of ACM Partners, a boutique financial advisory firm providing due diligence, performance improvement, restructuring and turnaround services.

• In his over 15 years as a change agent, David has served as an advisor, board member, interim manager, investor and operator at companies ranging in size from pre-revenue startups to Fortune 500 organizations.

• David has several publications to his credit and is a regular speaker on the topics of performance improvement, turnaround and restructuring.

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David Johnson


Email: [email protected]

Ph: 312-505-7238

Twitter: @TurnaroundDavid

mailto:[email protected]

https://twitter.com/turnarounddavid

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Restructuring Recap - 12.6.15