Getzler Henrich & Associates LLC; New York
Some potential buyers of distressed companies may be sitting on the sidelines, waiting for the economic cycle to shift to growth mode so they can return to acquisitions, but some of the most recognized names and most prized assets in the nation have landed in bankruptcy during 2009 due to liquidity constraints, too much leverage, operational issues, etc. While buyers are unable to obtain the leverage of previous years, the discounted valuations of companies in distress or near or in bankruptcy can set buyers up for profit-taking once the economy strengthens. Now is the time to purchase blue-chip assets at bargain prices.
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Grant Thornton LLP; New York
As the Great Recession wreaks havoc on the once recession-proof gaming industry, many gaming companies are struggling to survive. These companies are highly regulated, capital-intensive businesses with high fixed-cost structures. Personal income and consumer spending drive gaming revenues. For more than one year, both have been declining. Net revenues at gaming companies during the last year declined because of weak foot traffic and patrons reallocating their entertainment dollars. Revenue from hotel operations has a high elasticity of demand, and the decline in leisure travel, along with the slowdown in business and group travel, has placed downward pressure on hotel room rates. This, coupled with an overall decrease in consumer spending that is not expected to let up in the short term, is causing gaming companies to struggle.
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Did you miss the Financial Advisors and Technology and Telecommunications Committee session at this year's Winter Leadership Conference? The recording can now be accessed on the Financial Advisors Committee website under the Materials tab. The session, entitled "News at 11 - Valuing and Restructuring Media Companies," featured Gerald A. Shapiro of BDO Corporate Consulting Advisors in New York as moderator. Panelists included Steven Cramer of Imperial Capital, LLC in Los Angeles, Charles R. Goldstein of Protiviti Inc. in Baltimore, Paul V. Possinger of Proskauer in Chicago and Bennett L. Ross of Wiley Rein LLP in Washington, D.C. Click here to go there now!
ABI's 28th Annual Spring Meeting will be held April 29-May 2 at the expansive Gaylord National Resort and Convention Center, just moments from Washington, D.C. The Financial Advisors Committee will present a session entitled "Have You Heard the One about the Equity Dividend in a Chapter 11 that Was More than Chicken Feed?" William K. Snyder of CRG Partners Groups LLC in Dallas will moderate. Panelists will include Dan Aronson of Lazard in New York, Stephen A. Youngman of Weil, Gotshal & Manges LLP in Dallas and Jeremy B. Coffey of Brown Rudnick LLP in Boston. Register today!
