Distressed Distressed Downturn Downturn Liquidity Liquidity SCertificationolutions ...... SCertificationolutions ...... Hedge funds Hedge funds Education Education Lenders Lenders 2007 Annual Report Credit Credit Economy Economy Distressed Distressed Downturn Downturn Liquidity Liquidity Certification Certification Webinars Webinars Investors Investors ...... Debt ...... Debt Membership Membership Lenders Lenders Issues Focused Credit Credit Economy Economy Distressed Distressed Member Centered Downturn Downturn Education Education Globally Engaged ...... Hedge funds ...... Hedge funds Debt Debt Certification Certification Opportunity Opportunity Investors Investors Conferences Conferences agility Credit Credit Education Education Downturn Downturn Distressed...... Distressed...... Liquidity Liquidity SolutionsCertification SolutionsCertification Hedge funds Hedge funds Opportunity Opportunity ...... Investors ...... Investors Debt Debt Strategic 150 S. Wacker Drive, Suite 900 Strategic Economy Chicago, IL 60606 Economy T 312.578.6900 Credit F 312.578.8336 Credit

Conferences Conferences Conferences Credit Economy Distressed Downturn Contents Liquidity Solutions Business Highlights 2007...... 2 Hedge funds International Chapters...... 4 Education Lenders Credit The dynamic restructuring market tested the North American Chapters...... 8 Distressed Downturn Turnaround Management Association’s ability to stay Liquidity Certification Communications...... 22 during 2007. Investors ahead of the curve Rising oil Membership...... 23 Debt Opportunity prices, a sudden mid-year credit crunch, and a Lenders Credit Cornerstone...... 24 plummeting real estate market put the “R” Economy Distressed Downturn Education...... 28 word on the tip of everyone’s tongue. An up-cycle for Education Hedge funds the seemed on its Annual Convention...... 30 corporate renewal industry Debt Certification way. But what form would it take? A major shift in the Opportunity Awards...... 27, 32-33 Investors Conferences restructuring world made vigilance and agility Credit Moving Forward...... 34 Economy the watchwords of the year. Education Downturn Financial Report...... 36 Liquidity SolutionsCertification Hedge funds 2007 TMA International Board of Directors...... 37 Opportunity Investors Debt

Strategic 1 Brazil Weak U.S. Dollar Corporate Renewal 2007 Chapters Easter Europe Business Highlights “Every morning in Africa, a gazelle wakes up. It knows it must run Subprime knock down China faster than the fastest lion or it will be killed. Every morning a lion During 2007, many of the financial Hong Kong services firms were hammered from Licensing wakes up. It knows it must outrun the slowest gazelle or it will mortgage-related losses, with double- starve to death. It doesn’t matter whether you are a lion or a digit declines and a cumulative Emerging Markets market value drop of $319.8 billion. Educational gazelle. When the sun comes up, you better start running.” Percentage of decline from their Growth From The World Is Flat by Thomas Friedman ...... 2007 peak to the second week in January 2008 Debt Two thousand and seven began with no skip in the beat of an economic E-Trade Financial Corp. -89% Certification cycle still riding high. The stock market was up. Growth was above-par. Deal Opportunity 2007 Countrywide Financial Corp -86% Brazil flow moved at a swift and steady pace propelled by abundant credit and Washington Mutual Inc. -69% Weak U.S. Dollar widening influence of international players. Mergers and acquisitions hit a Bear Stearns Cos -58% Merrill Lynch & Co. -49% record. Corporate debt remained seemingly default-proof. Profits boomed. Expansion Citigroup Inc. -49% Morgan Stanley -47% International Bankruptcy Abuse Prevention and Lehman Brothers Holding Inc. -33% Chapters Then it happened. Source: Chicago Tribune, January 12, 2008 Consumer Protection Act (BAPCPA), pro- Easter Europe Halfway into the year, the subprime fessionals adjusted to the new norm of At least 20 mortgage lenders mortgage lending market caved, and all China out-of-court restructurings. Through the have declared bankruptcy since Hong Kong those complex securities packages backed December 2006. US foreclosures easy credit years, firms diversified their by assets that included mortgages no set a third-quarter record. Licensing services to build a broader client base. Source: Bloomberg Emerging Markets longer were airtight. The housing Educational market’s deep funk spread as mortgage Trickle-down: The crisis in the Within TMA, membership grew as defaults spiked, home values plummeted, housing market has caused pain and Growth chapters made new alliances with other suffering to secondary industries: fur- Investors and foreclosures spread. Even old guard niture, home furnishings, housing ...... professionals, successfully communicated Russia investment houses could not disentangle products, lumber companies. the breadth of their skills, and estab- Household names like Bombay Co., themselves from the mess, and chiefs at India lished new outposts around the globe. Levitz Furniture, and Sofa Express Merrill Lynch & Co. and Citigroup, Inc., have filed for bankruptcy. Top 10 U.S. Business Stories of 2007 Whatever looms in 2008, the very nature were shown the door...... Selected by msnbc.com of turnaround professionals suggests they 1. Mortgage defaults rise in the U.S. and home prices fall, triggering will be ready. Debt chaos in commercial paper markets and a credit crisis that reverberates The year came to an end with lackluster Certification around the globe. holiday sales, oil prices near all-time JUNE 2007 TREND WATCH Opportunity This 2007 TMA Annual Report highlights 2. Toy recalls cause potential backlash against “Made in China” products. highs, rising unemployment, and fear POLL FORETELLS CRASH Brazil 3. Crude oil prices march closer to $100 a barrel, keeping gasoline pump the accomplishments of turnaround pro- that a tottering economy was headed PROJECTED INCREASE IN prices high. fessionals who have devoted their ener- Weak U.S. Dollar toward recession. DEBT DEFAULTS 4. Apple Inc.’s profits and share price soar with launch of iPhone and gies to building an international updated iPod players. professional community dedicated to Other Indeed, six out of 10 respondents in the 4% 5. The Fed cuts borrowing rate twice in the second half of the year to corporate renewal and turnaround man- 2009 or later Expansion Last half of 2007 keep the economy from falling into a recession. Turnaround Management Association's 13% International agement. As it approaches its 20th 20% 6. Dow Jones Industrial Average tops 14,000 for first time, then pulls annual Trend Watch poll on the state of Chapters anniversary year in 2008, the TMA is Easter Europe...... back as credit crisis intensifies. the turnaround industry reported now more than 8,000 members strong 7. U.S. dollar falls to record lows against the euro. inquiries, engagements, and revenues Last half of 2008 and continues to advance its mission: 23% 8. Media consolidation with Rupert Murdoch buying Dow Jones, parent had increased at least 10 percent in the 1st half of 2008 China of the Wall Street Journal; Sam Zell acquiring Tribune Co.; Thomson Corp. “To serve the needs of participants from 40% past 12 months. Seventy percent report- Hong Kong taking over Reuters. all disciplines by building awareness of ed an uptick in inquiries from banks and 9. Ousters of Merrill Lynch CEO Stan O’Neal and Citigroup CEO the corporate renewal industry, promot- TMA respondents to a June 2007 Trend Licensing lenders, up from 57 percent in 2006, Watch poll nailed it. Sixty percent said Charles Prince. ing high standards of practice, fostering Emerging Markets10. Food recalls as e-coli and other health risks found in hamburger meat. evidence of the widening impact of the by mid-2008, there would be a signifi- the professional development of and cant increase in debt defaults. credit crunch. Educational enhancing the image of TMA members.” Growth Turnaround professionals demonstrated ...... Investors their nimbleness in the face of economic Russia vagaries, employing the skills they use every day to manage crises on the job. India Following the 2005 passage of the

2 3 Brazil Weak U.S. Dollar International Chapters Chapters Easter Europe Across the globe, the business of turnaround and corporate restructuring “Astute and well- China gained credibility in 2007. positioned players [can] Hong Kong assist companies…that Licensing A groundbreaking Enterprise Bankruptcy Law of China applying to a broad lose their Emerging Markets swath of insolvent entities took effect. Distressed investors flocked to Europe Educational in search of new vistas as the greenback withered and the U.S. subprime footing as ...... Growth mortgage crisis grew. Emerging markets in Brazil and elsewhere hummed. the world flattens. The Debt Certification Even the sturdiest global markets began to see signs of trouble as the year separation Opportunity wore on and credit casualties on the U.S. front mounted. Local governments between Brazil in Australia raised concerns about potential losses from mortgage-backed foreign and domestic is Weak U.S. Dollar investments. European banks broke into a cold sweat as the value of corpo- rate loans and bonds began to melt. News photos of customers clamoring for becoming less relevant in their savings during the run on Northern Rock Plc reflected a state of alarm. the face of powerful International global economic trends Chapters ...... Easter Europe With looming uncertainties, TMA International Chapters are preparing that make no such dis- themselves for a future that appears primed for the skills turnaround and tinction.” China insolvency professionals offer. Hong Kong Linc Rogers, Toronto/Chicago Australia Special Olympics teams traveling to Midwest Chapter, Blake, Cassels Licensing and Graydon LLP Emerging Markets Fresh from its 2006 win as Most Improved China. More than AUD $170,000 was Educational Chapter of the Year, the Australia Chapter raised. The chapter also contributed to Growth established new satellite groups, improved Legacy Australia, which provides support ...... Investors governance procedures, set goals for con- for families of soldiers lost in action. Russia tinuing education and more in a water- India shed year for accomplishment. Finland The Finland Chapter’s first conference in ...... Globally Established in 2003, the chapter expand- 2007 attracted government officials, industry professionals and media atten- Debt ed and a new Western satellite chapter Certification joined those in New South Wales, tion. Opportunity Victoria and Queensland. Overall mem- bership grew from 143 to 216. “The two-day conference raised aware- Brazil ness about TMA as we hoped it would (L-R) 2007 Australia Chapter President Weak U.S. Dollar Schon Condon, Jane Flemming, LLC International The chapter also improved governance and served as a great opportunity to and 2008 incoming President Ian Engaged procedures, developed a strategic plan, meet other professionals who in their Johnson pose as a chapter event wraps up. Expansion appointed an external accountant and work come in contact with distressed Top European Business Headlines of 2007 tax agent, set goals for continuing edu- companies and other turnaround-related cation, and updated its constitution. It issues,” said 2007 President Jari Pirinen. Chapters Source: Business Week. also launched a website and made plans Easter Europe 1. Credit Crisis 2. The A380 Flies in a Tough Year for Airbus to revamp its newsletter. State Secretary Anssi Paasivirta from the China 3. The iPhone Lands—and Europe Responds Ministry of Trade and Industry spoke Hong Kong 4. The Troubles at Alcatel-Lucent “When one considers the number of about the effect of the global economy 5. The Demise of DaimlerChrysler members and the age of the organization, and turnaround management on Finnish Licensing 6. Changing of the Guard at Siemens it is clearly visible that we ‘punch well businesses, while Bankruptcy Emerging Markets 7. Energy—and Alternatives above our weight,’ said Schon Condon, Ombudsman Eeva Arko-Koski from the At the end of the turnaround man- 8. High-Tech Antitrust Educational 2007 chapter president. Ministry of Justice discussed the new agement seminar, (L-R) Antti Paasio, 9. Climate Change and Carbon Awareness Finnish Restructuring of Enterprises Act. professor, Business Research and Development Centre, Turku School of Growth TMA International President William E.J. The chapter’s Special Olympics Economics; Hannu Ylönen, Finland ...... Investors Sportsman’s Luncheon in Sydney drew Skelly discussed turnaround management Chapter vice president; and Jari Russia 550 members and guests. It was followed trends in North America, and several Pirinen, Finland Chapter president, by encore events in Melbourne and attorneys made presentations on practi- take a moment to relax. India Brisbane to defray travel expenses for cal issues of restructuring. The business

4 5 International Chapters International Chapters

newspaper Kauppalehti wrote about one professional known for the breadth of Industry professionals and academics at the Taiwan Chapter's Corporate of the presentations and featured Pirinen his turnaround experience. Attorney Renewal and Distressed Investing on its front page. Tadashi Shimizu is associated with the Conference include from left, Gordon restructuring of Kohjin Co., Ltd., Giken Johnson, TMA vice president of inter- national relations, Thomas M.F. Yeh, The 72-member chapter appointed Kogyo Co., Ltd., Tada Corp., Sanwa Taiwan Chapter vice chairman, C.F. regional managers to make sure informa- Buildings, Terukuni Marine Shipping Lee, professor at National Chiao Tung tion reaches members in all points of the and Kanasashi Shipbuilding. In a presen- University and Rutgers University, Anthony Saunders, professor at country, which is about the size of New tation, he discussed core turnaround New York University and Dar-Yeh York, New Jersey and the New England principles and their social significance. Hwang, Taiwan Chapter president region combined. The chapter also The event also covered the turnaround and professor at National Taiwan University. updated its website and made plans to of Tohato, Inc., an established confec- launch a free telephone helpline for tionery manufacturer that filed for bank- delved into the corporate restructuring of An article about the conference was pub- TMA France President Anker small businesses in the next few years. ruptcy protection through the Civil the Far Dragon Stainless Steel Corp. and lished in Business Money magazine. Sorensen (left) welcomes Howard Brod Brownstein, CTP. Rehabilitation Law. Kenichi Kiso, a part- domestic investment strategies and France ner of Unison Capital, Inc., discussed attracted 273 attendees over two days. Other International Chapters The France Chapter learned about the how he shepherded the company's reha- Global interest in corporate restructuring process of establishing a certified turn- bilitation. The chapter reached 113 At the chapter’s March conference, stirred great interest in TMA. In October around professional program in an event members during the year. “Corporate Renewal and Distressed 2007, the TMA Board of Directors that featured a TMA Ambassador. Investing,” keynote speakers included approved new international affiliates in Howard Brod Brownstein, CTP, Southern Africa Gordon Johnson, TMA vice president of the Czech Republic, the Netherlands NachmanHaysBrownstein Inc., offered The Southern Africa Chapter saw the international relations, Eiten Inamura, and Spain. Along with India, each made some guidelines during a stop he made unveiling of a business rescue bill. vice president of the Japan TMA Chapter progress in 2007 toward completing while on his international travels. The The draft legislation would provide for a and Anthony Saunders, a professor at requirements to formally affiliate with The Millennium Gloucester Hotel in Ambassador program encourages mem- temporary moratorium on the rights of New York University. One popular session TMA. The Board also pre-approved London was the site of the 2007 bers to check in with international chap- claimants against an insolvent company, dealt with the restructuring of the Reba affiliates in Italy and China, sending a TMA UK annual conference. ters while abroad. During that event, the the development and implementation of Group. message of encouragement and good chapter also dealt with other topics, a financial and operational restructuring faith to the organizing groups. TMA Japan President Professor United Kingdom Yoshinobu Konomi (right) presents including the economic forecast and plan, and more. Chapter members have the Turnaround of the Year Award to cultural differences that emerged during weighed in on the process with govern- Instead of concentrating on familiar tech- Tadashi Shimizu. the turnaround of a Swiss subsidiary of a ment officials during the past few years. niques for managing businesses in crisis, large U.S. group. They submitted a 65-page document the 2007 TMA UK annual conference with comments during the government’s organized by the 197-member chapter Germany Companies Bill conference in March. explored ways to institute long-term solu- The Germany Chapter nearly quadru- The 43-member chapter also organized a tions leading to financial soundness and pled its membership to reach 125 in panel discussion on the new legislation longevity. 2007. Two successful conferences that attracted turnaround practitioners, contributed to that milestone. The first bankers, liquidators, lawyers and aca- The conference attracted 150 members annual assembly in Düsseldorf was demics. and guests and a record number of followed by workshops on trends in the exhibitors to Millennium Gloucester German/European restructuring commu- Taiwan Hotel in London. Speakers included Jon nity. The second conference was held in Developments in the U.S. credit land- Moulton of Alchemy Partners, James “I had the privilege of attending the Annual Berlin. Chapter President Frank Nikolaus scape produced a good turnout for the Wilding of AlixPartners and Steven Norris Conferences of the UK and Australia TMA said the chapter saw high attendance at Taiwan Chapter’s workshop, “Investment of Jarvis Plc, who discussed his role Chapters. It is really amazing to sit in a city TMA Southern Africa Director during the turnaround of the company’s Professor David Burdette explains the conferences, a result undoubtedly helped and Risk Management of Subprime thousands of miles from North America and new business rescue legislation. by the chapter’s establishment of several Mortgages.” building and maintenance group. find that people not only understand what working groups. Attendees heard about the impact of the our organization stands for, but also embrace credit crunch, developments in govern- The chapter showed a keen interest in it as the leading association in the field.” Japan finding out about the necessary precau- ment policy affecting corporate restruc- Establishing a tradition, the Japan tions to avoid the problems resulting turing and turnarounds, the role of William E.J. Skelly, Vancouver attorney and first TMA president from outside Chapter awarded its second Turnaround from the crisis, according to Chapter private equity players, and more. the United States of the Year Award in 2007 to a President Dar-Yeh Hwang. The workshop

6 7 Brazil Weak U.S. Dollar North American Chapters

Chapters Easter Europe TMA North American chapters anchored programs with top names in China business, launched scholarship funds and activated new satellite chapters in Hong Kong 2007. Chapter leaders poured their energies into organizing worthwhile Licensing programs, fostering networking across professional disciplines, and serving Emerging Markets communities outside their business sphere. Impelled by that effort, TMA Educational reached a milestone when its 8,000th member signed up at the TMA Annual Growth Convention in Boston. TMA finished the year with 8,304 members, up from ...... 7,683 in 2006. Debt Certification Alabama Leaders met regularly to discuss and Opportunity Spawned by a need to serve professionals review chapter finances and a monthly Brazil Weak U.S. Dollar working with distressed businesses, the budget review process was put in place. Alabama Chapter made its debut in The 136-member chapter revamped its Membership 2007. Its members include attorneys, sponsorship program, and appointed a International lenders, investment bankers, financial new programming chair for 2008. Chapters advisors, accountants, and auctioneers. Easter Europe California [Northern] China The chapter’s first event in September The Northern California Chapter’s near Hong Kong centered on the turnaround of sellout events included keynote presenta- Licensing HealthSouth, one of the nation’s largest tions by Richard Kovacevich, Wells Fargo Emerging Markets healthcare providers. Executive Vice & Co. chairman, and New York Educational President, General Counsel and Secretary University’s Stern School of Business John P. Whittington spoke to a crowd of Professor Edward I. Altman. A panel pres- John P. Whittington of HealthSouth Investors ...... Growth nearly 60 guests, including TMA mem- entation by debtor and creditor represen- discusses the company’s rebound Russia bers from Georgia, Florida and tatives in the Legacy Wine Group before a rapt audience during the India Tennessee. bankruptcy case also left few empty seats. Alabama Chapter's first official event.

...... Locally “The excitement and interest generated The 152-member chapter reached 100 per- cent of its goal and reaped rewards from Debt by the success of the event led to the Certification recruitment of several new members and “better definition and articulation of its Opportunity increased registrations for future events,” objectives with respect to the local busi- said 2007 Chapter President Steve ness community,” according to 2007 Brazil Weak U.S. Dollar Alexander. Chapter President Russell K. Burbank, CTP.

The 86-member chapter was officially California [Southern] Energized welcomed to the TMA network during The Southern California Chapter looked Expansion the 2007 Annual Convention in Boston. to the headlines in organizing its educa- InternationalChapters tional programming slate, one of the ini- Arizona Chapter members enjoy an Easter Europe...... Arizona tiatives that earned it the 2007 Most evening of jazz and holiday celebra- “A Perfect Storm of Financial Disaster,” Improved Chapter of the Year Award. tion at the Wrigley Mansion in December 2007 during a mixer with China the Arizona Chapter’s November pro- the Association for Corporate Growth. Hong Kong gram on the local real estate market, A breakfast program on the subprime lend- stirred up a crowd of more than 140. ing industry was especially relevant in a Licensing market in which companies such as New Emerging Markets “Fifty-five percent of attendees were non- Century Financial played central roles in Educational members,” said 2007 Chapter President J. the housing meltdown. A program on Dale Belt, CTP, who sent follow-up letters Southern California’s hospital system cov- Growth to invite them to join TMA. “We have ered unique legal issues facing hospitals in ...... Investors steadily increased our membership. I bankruptcy and exit strategies. Russia believe this is because of the quality pro- grams and networking events open to For the second year, the 310-member India nonmembers.” chapter joined the Commercial Finance

8 9 North American Chapters North American Chapters

Conference of California and the panel illustrated how corporate leaders territory. The joint event with the tapped into the news, so he can plan a Association for Corporate Growth to should (and should not) behave in given Commercial Finance Association includ- full schedule of meaningful events,” present a half-day seminar on financing business situations, according to 2007 ed a riding tour of the 1.5-mile-long Blutter said. and restructuring trends. “Turnaround President-Elect Sandra Abitan. The chap- Lowe’s Motor Speedway and a Toys for professionals need to know the lenders, ter also held an equity forum, an eco- Tots drive. The chapter held its first women’s net- the dealmakers,” said 2007 Chapter nomic forecast seminar, a cocktail event working event and attracted interest President Mette H. Kurth. “The event and a holiday party. The year also brought high-profile speak- from private equity and specialty finance was a nice cross-pollination for the ers to chapter educational programs, professionals in the region. Carolinas Chapter members and organizations.” Canada [Toronto] including Sheila Kahanek, the only guests enjoy the festivities at Lowe’s The Toronto Chapter’s 2007 Newsmaker defendant in Enron’s Nigerian barge trial “Networking at the Yards,” an event held Motor Speedway. Other joint events with the International Dinner again produced headlines when to be acquitted. The International each year at Camden Yards, attracted Women’s Insolvency Restructuring former U.S. Secretary of State Colin Women’s Insolvency and Restructuring members and guests from the local area, Confederation resulted in the formation Powell delivered the keynote address. Confederation Carolinas Network co- as well as Philadelphia, New Jersey, and of the chapter’s new diversity committee. sponsored the event. New York. Powell’s discussion about global trends For the fifth year, the chapter presented and the importance of leadership and The impact of trends among the Big Colorado The Southern California Chapter’s its Night of Excellence Charity perseverance in the face of threats Three automakers on Southeast auto sup- Encouraging board accountability over annual Night of Excellence charity Networking Event at the Petersen attracted 408 attendees to the Royal York pliers was the basis of the “Detroit chapter activities, retaining an effective networking event is the brainchild of former Chapter President Michael Automotive Museum. Co-sponsors Hotel, the most ever for the dinner. Comes South” program. The South chapter administrator, and increasing a Cavan, CTP, MC of the 2007 event. include the Los Angeles Venture Other dignitaries present included Carolina attorney general’s white-collar base of sponsors helped the 162-member Association, the Association for Ontario’s Attorney General Chris criminal case against Home Gold Inc. Colorado Chapter reach 109 percent of Corporate Growth, the Commercial Bentley, Brigadier General David Fraser was discussed at another event. its membership goal. (L-R) Philadelphia Chapter Member Finance Conference of California, the of the Canadian Armed Forces and Bill Blenderman, Board Member Los Angeles Bankruptcy Forum, and the prominent judges. The 180-member chapter offered activi- “As a result of these concerted efforts, Valerie Ianieri and President Paul Blutter, both from the Chesapeake Association of Insolvency and ties in major centers, including we have experienced membership Chapter, strike a happy pose at the Restructuring Advisors. More than 300 “The Newsmaker Dinner featuring Colin Charlotte, Greensboro and Raleigh, N.C., growth and better retention of existing Networking at the Yards event. turnaround managers, financial advisors, Powell as keynote speaker was a smash- and Columbia and Greenville, S.C. members,” said 2007 Chapter President bankers, equity sponsors and practition- ing success and capped off a very suc- Mark J. Gustafson. “We believe that our ers attended, and nearly $20,000 was cessful year for the Toronto Chapter,” Chesapeake chapter’s transition from start-up mode raised for the City of Hope, a biomedical said 2007 Chapter President Gary The Chesapeake Chapter exceeded its to stable mode is our top accomplish- research and treatment institution. Franko. “Our diversified and broad-based membership goal in 2007 to reach 124, ment.” programming brought near record atten- and it wasn’t by accident. A joint holiday program with the Los dance to all our events and resulted in a The chapter’s third annual corporate Angeles Bankruptcy Forum and the 50 percent increase in the chapter’s “It is a reflection on the hard work that restructuring workshop featured panel Financial Lawyers Conference had more sponsorship dollars.” the board and the chapter’s members are discussions and a case study on real than 175 registered guests, including putting into the chapter,” said 2007 company events prepared by members. every judge from the Central District of The 320-member chapter held its ninth Chapter President Paul Blutter. “We The 2007 review of “Abbott and Costello California. Money raised supported local annual symposium titled, “Corporate spend considerable time and effort reach- Aviation” covered the travails of an (L-R) Mark Gustafson, Colorado pro bono organizations. Governance - Where Do Our Duties ing out to the turnaround community unnamed aerial firefighting company Chapter president, and Greg Dickey, Lie?” a newly established Lunch & Learn and recognize the changes in the envi- for 75 attendees at the University of board member, address the audience at the Corporate Restructuring and session and numerous networking ronment.” Denver (DU). Canada [Montreal] Loan Workout Seminar. The Montreal Chapter’s April education- events. The chapter also sponsored a al seminar, “Enronomics: The Causes Habitat for Humanity event for its mem- The April educational panel, “Distressed Members spent two weeks teaching a Chatting with former U.S. Secretary And Costs of Unethical Management,” bers and worked on a proposal to sup- Investing Opportunities and Turnaround restructuring unit in board member and of State Colin Powell are from left, Junior Del Brocco, Alex Jurshevski ranked among the year’s highlights for port the Regent’s Park Initiative, a Services in the Real Estate Industry,” fea- DU Finance Professor Ron Rizzuto’s class and the Right Hon. Judge Geoffrey the 79-member chapter. Experts from revitalization plan for a low-income tured speakers from Tranzon Fox, and led students through a mock work- Morawetz at the Toronto Chapter Newsmaker Dinner. various disciplines discussed the inter- neighborhood. Havenwood Capital Markets and out exercise. Members also reviewed 68 play of business ethics, leadership, self- Mercantile/PNC Commercial Real Estate. applications and interviewed DU stu- interest and greed in the boardroom. Carolinas “Our new VP of Programs Michael dents competing for a $6,000 scholarship Using clips from the documentary, The Carolinas Chapter capped off the Sandnes is always hard at work, speaking established by the chapter. One scholar- Enron: The Smartest Guys in the Room, the year with a holiday party in NASCAR to people in the industry and staying ship was awarded.

10 11 North American Chapters North American Chapters

The second annual golf tournament in Center Hospital. A joint event with the event attracted 100 people and raised Gibbons who discussed the chain’s July made it possible for the chapter to New York Institute of Credit took place $11,000 for the 303-member chapter. restructuring and underscored the donate $8,000 to founding board over two days at the Mohegan Sun importance of building customer loyalty member Steven Hill, who was diagnosed Casino and Resort. Beyond golf, spa The chapter presented two $2,500 fel- and planning for long-term value after with a brain tumor and passed away late services, a cocktail reception and meals, lowships for University of Florida’s the turnaround. in the year. members and guests heard top-notch Fisher School of Accounting students panels led by bankruptcy judges from during its “When Everything Goes Connecticut New York, Connecticut and New Jersey. Wrong” turnaround case study seminar. Illinois [Chicago/Midwest] The Connecticut Chapter pushed past its More than 200 professionals attended, The Chicago/Midwest Chapter estab- membership goal in 2007 and declared and the event generated a cash surplus The chapter covered membership costs lished a nonprofit scholarship fund, mission accomplished on three more: in excess of $20,000 that supported for 10 students, most employed as unveiled two new educational programs presenting locally relevant topics, other programs during the year. summer interns in bankruptcy law and served as a chapter host for a new expanding its footprint and organizing practices. “In 2008, we plan to sponsor regional conference on top of more than Noel Boeke (center), 2007 Florida one special event to remember. The chapter registered 10 new members several turnaround programs at other a dozen other activities in 2007. Chapter president, accepts the Chapter of the Year award from 2008 to total 148. “The Connecticut TMA Florida universities and with Enterprise TMA Chairman Bill Skelly (left) and Panel discussions focused on M&A activ- Chapter’s ability to execute upon our Florida, Florida’s public-private organiza- The TMA Chicago/Midwest Chapter 2008 TMA President Arthur three stated goals clearly enabled the tion devoted to statewide economic Perkins. The Florida Chapter has ity among firearm companies and the Memorial Scholarship Foundation was grown over the past seven years from residential lending crisis, as reflected in chapter to increase membership in a rel- development,” Boeke said. “With established to honor deceased chapter 50 to 300 by having events in five the plight of Mortgage Lenders Inc., one atively calm year for actual bankruptcy Florida’s depressed real estate market members and recognize members and locations throughout this large state. of the first subprime lenders in the state filings,” said 2007 Chapter President offering unprecedented turnaround nonmembers who have made significant to declare bankruptcy in 2007. Robert Rakowski. “We look to 2008 to opportunities, we hope to brand Florida contributions to the industry. The 1,082- The Southern California Chapter, build upon these accomplishments to TMA as the ‘go-to’ source for turnaround member chapter raised nearly $60,000 headed by 2007 President Mette Kurth, earned Most Improved With the state being a hub for banking, further grow the membership and pro- and restructuring advice,” he said. for the foundation through its charity Chapter. It re-energized the corporate hedge funds and private equity finance, vide great events.” golf outing and a matching challenge renewal community in its area, the chapter also hosted programs on Georgia [Atlanta] grant from Lake Pointe Partners. The adding new, young practitioners to its ranks. distressed debt funds and poisoned port- Florida Securing a former vice presidential can- first scholarships will be awarded to folios in the credit markets. Comple- Just off its 2006 honorable mention win didate who made history was just the college-bound high school students in menting those were three educational in TMA’s Chapter of the Year category, start of a public relations bonanza for the 2008-2009 academic year. programs on out-of-court restructurings, the Florida Chapter finished what it the Atlanta Chapter. manufacturing turnarounds and fraud. started, to earn the 2007 Chapter of the The chapter also introduced new pro- Year award. The chapter’s cocktail reception with grams apropos of trends in the market: The chapter also hosted a joint cocktail Geraldine Ferraro got a reporter interest- “Hedge Funds Unwrapped,” cosponsored party with the International Women’s The chapter maintained its high profile ed in finding out more about the turn- with the Chicago Chapter of the Insolvency and Restructuring Confed- in 2007 by hiring a public relations firm around management industry. The Association for Corporate Growth, aimed eration and a panel called “Good Deals that helped produce more local media Atlanta Business Chronicle later published to demystify the industry and its strate- Gone Bad” sponsored with the coverage, including an article in The a six-page profile titled “Turnaround gies. Of more than 325 professionals in Association for Corporate Growth. Florida Times-Union. Management: Navigating Troubled attendance, roughly a third were guests. Waters.” The debut of “The Nuts and Bolts of The chapter expanded its base for events A new sponsorship program provided Buying and Selling Distressed from New Haven along the southern funds for use at the chapter’s discretion. “In the face of declining enrollment, we Companies” workshop sold out with 90 shoreline to Hartford, in the central part “We like the flexibility this seed capital decided to really improve the quality of attendees. The Atlanta Chapter scores a splash in of the state, and Fairfield, in the south- affords us to fly in a name speaker or to our programs and speakers,” said 2007 the Atlanta Business Chronicle. west part of the state. The Wadsworth fund our turnaround education initia- Chapter President Bruce Sim. “And, the Of all the chapter events, 2007 President Atheneum, the new Connecticut tives,” said 2007 Chapter President Noel Ferraro event attracted media attention, Lisa Johnson named the inaugural Mid- Convention Center, and the Milford Boeke. which precipitated a special newspaper America Regional Conference as especial- Yacht Club were among new meeting section, which precipitated sold-out ly notable. The chapter co-hosted the places. The chapter’s annual golf tournament chapter events, which precipitated event, along with the Detroit, Upper marked the debut of the chapter’s first higher membership.” Midwest, Missouri and Ohio chapters. The chapter’s annual charity golf event 13-Week Cash Flow seminar. It was held “Not only was the attendance good, but produced a donation of more than before the traditional cocktail reception The chapter anchored another event it attracted people who don’t typically $5,000 to the Connecticut Children’s the night before the tournament. The with former Burger King CEO Barry attend a national conference,” she said.

12 13 North American Chapters North American Chapters

“The educational sessions were very each other. “The purpose was to learn Minnesota [Upper Midwest] Nicholas A. Franke, “and we will use it well-attended from beginning to end.” more about each other’s businesses and In a year that ended in credit market to benefit a different charitable program practices, and the event was extremely turmoil, the Upper Midwest Chapter each year.” The chapter’s pro bono committee assist- well-received,” Liuzza said. gave its members a chance to learn more ed both a machinery company on the about hedge funds and their impact on The 90-member chapter, which draws rebound after suffering losses from an Michigan [Detroit/Grand Rapids] the local market. professionals from Kansas City and St. embezzlement scheme, and a nonprofit The Detroit Chapter shepherded the Louis, offered more networking events organization that needed to reexamine Grand Rapids satellite chapter into exis- “It was very timely in our marketplace and educational programs such as “The its client base and develop new market- tence in 2007, and then the offspring based on the recent turn of events in the Changing World of Deepening ing tools. made a splash of its own. economy nationally,” said 2008 Chapter Insolvency.” It implemented a sponsor- President Brian J. Klein. ship program and served as a host chap- Keynote speaker Jerry York is flanked Chicago/Midwest Chapter members For the second consecutive year, chapter The satellite chapter was featured in a ter of the Mid-America Regional by Detroit/Grand Rapids Chapter offi- sing along to the music of Barry members volunteered for a telethon to Michigan Business Review article, “Rescue The panelists included 2007 TMA Conference. cers, David Priestley, left, and Chuck Manilow and Olivia Newton-John Moore, right. when the phones aren't ringing at the raise money for a public television sta- Rangers for Distressed Companies,” Chairman Colin Cross and former TMA WTTW Telethon. Ten volunteers, tion. Volunteers also spent an evening which introduced the new board led by Chairman Martin McKinley. Nearly half Nevada including Michael Ban, Mike Baratta, reading books and making crafts with CTP, Tom Bednar, John Hausmann, David Distel. of the more than 50 guests in atten- In its second year as a full-fledged TMA Diane Meister, Mark Hoffman, Mike children and their families at a nonprofit dance were first-time attendees. chapter, the Nevada Chapter increased Paulsen, Tony Stonitsch, Jim Vargo, social service agency. Overall, the chapter reached 333 mem- membership from 36 to 59 and saw and Eric Von Bauer, are all smiles The chapter also saw good attendance even after braving a storm to get bers, 120 percent of its goal. To keep all good results from programming. there. Louisiana those members happy, the chapter met and media coverage on its program fea- With pressure to produce swifter turn- requirements to offer continuing profes- turing members of the Itasca Project, a The documentary, Enron: The Smartest arounds, industry professionals need to sional education credits for CTPs and group of top executives and government Guys in the Room, anchored a program know about mediation, a tool that great- CPAs. leaders in the Twin Cities region devis- on business ethics and abuse of corpo- ly expedites the settlement of lawsuits. ing ways to improve the local business rate governance. Panelists included the The Louisiana Chapter’s program on that “Local firms have supported the CTP climate and quality of life. A young pro- Hon. Bruce A. Markell, from the U.S. topic was one of its best in 2007. program,” said 2007 Chapter President fessionals group was started, and the first Bankruptcy Court for the District of Michael Hausman, CTP. “The Detroit annual Mid-America Regional Confer- Nevada; Nancy Rapoport, professor of “There’s a growing number of mediation CTP exam courses have been very suc- ence utilized the resources of the chap- law at the University of Houston Law firms in the area,” said 2007 Chapter cessful, and as a result, Detroit has one ter, as well. Center; and Jeffrey Shaw, chief executive President Vince Liuzza, CTP, recalling the of the highest number of CTPs in the of Southwest Gas Corp. A flier for the Upper Midwest program that featured a former bankrupt- country.” The 181-member chapter collaborated Chapter's Wine Tasting and Silent Auction presents the schedule for an cy judge-turned mediator along with a with the Risk Management Association “While they certainly serve as network- evening of networking and elegance principal of the largest mediation firm in The chapter’s third annual automotive to organize a Wine Tasting and Silent ing functions for our membership, for a good cause. Louisiana Chapter Board Member the Southeast. “It was a terrific service for conference organized with the Federal Auction that raised about $5,200 for monthly programs must also serve as Rick Blum (left) and Past President our chapter to enlighten people on this.” Bar Association generated its own media St. Joseph’s Home for Children in significant added value to our members’ Hank Arnold (right) welcome 2007 coverage with headliner Jerry York, Minneapolis. body of business knowledge and be Governor-Elect Bobby Jindal at a program centered on his plans for A joint lunch meeting with the Associa- former CFO of Chrysler and IBM, who applicable to their daily business,” said the state. tion for Corporate Growth focused on also served on GM’s board. Judge Missouri 2007 Chapter President Lanis O’Steen. the turnaround of McDermott Interna- Stephen Rhodes and University of The Missouri Chapter’s annual golf tional, a case complicated by environ- Michigan Law Professor James White tournament in 2007 took on a special For its pro bono project, the chapter mental issues. Piccadilly Cafeteria chain, debated the merits of different purpose after the sudden death of a helped Lied Animal Shelter with man- purchased by a private equity firm after bankruptcy venues, and panelists dis- chapter member at age 41. Members agement issues. emerging from Chapter 11, was the topic cussed auto supplier issues. The half-day raised about $7,800 through sponsor- at another program. Edward Blakely, program attracted 235 members and ships and partnerships to help Bobby New Jersey New Orleans’ recovery czar, updated guests. Tun’s family. An asset-based lending The New Jersey Chapter joined the members on the city’s post-Katrina officer in the Midwest, Tun was recalled Association for Corporate Growth to rebound. The chapter’s annual golf outing raised in the chapter newsletter as a profession- welcome a 2006 TMA Mid-size Company $2,500 for the University of Detroit al who “never met a stranger and was Turnaround of the Year Award winner The 35-member chapter ended the year Mercy’s Business Turnaround always there to help.” who put profits back into a slipper busi- with a dinner in which attendees Management Program, which members ness. Pittsburgh Chapter member described their businesses and got con- helped develop. “We transformed this event into a chari- Margaret Good, CTP, discussed her work structive feedback on how to market to ty event,” said 2007 Chapter President in the turnaround of R.G. Barry Corp., 14 15 North American Chapters North American Chapters

The Dearfoams ® Company. It was a versity after its business school attained a famed chef’s kitchen and its fifth the chapter’s website. The “Members On highlight in a year in which the 222- accreditation from a global body. annual billiards night. the Move” section logs updates on sig- member chapter reached 108 percent of nificant cases and engagements and new its goal. The 117-member chapter also strength- The chapter also began organizing cash business and fund launches. ened ties with other professional groups flow/modeling seminars for 2008. “With the offer of free admission to our through educational programs. Leslie “We changed and improved in a few January holiday party to those who had Berkoff, chair of the International New York [Upstate New York] ways during 2007,” said 2007 Chapter paid membership in full, we enjoyed the Women’s Insolvency and Restructuring With an eye to grooming future industry President Scott Fiore. “We put a stake in benefits of an early membership drive,” Confederation, spoke at one event, and professionals, the Upstate New York the ground to offer up continuing edu- Nick Jalowski, CTP, New Jersey said 2007 Chapter President Karen Wanda Borges, chair of the Commercial Chapter ushered in its first university cation for our members. We went about Chapter vice president of education, left, and Karen Giannelli, New Jersey Giannelli. “We improved it further Law League, spoke at another. affiliate in 2007. that very simply. We decided to host an 2007 Upstate New York Chapter Chapter president, third from left, throughout the year, due in part to the annual ‘free lunch’ for members (non- President David Fiegel prepares for a welcome keynote speaker and TMA continuation of our popular statewide The chapter reached a milestone for The student-run chapter at the State members welcome, but have to pay for meeting with Snigdah Sharma, one 2006 Turnaround of the Year Award of the chapter’s student members winner Margaret Good, CTP, second small networking breakfasts, as well as charitable donations through its annual University of New York Buffalo opened admission) during which a selected topic who is studying for an MBA at the from left. Also present are Heidi our sponsorship program enticements.” golf outing at Indian Hills Country Club to MBA students in the fall. The chapter would be discussed. This year was alter- State University of New York at Shore and Mark Kuehn, both from in Fort Salonga and annual Toy Drive routinely welcomes business and law natives to Chapter 11. We are still refin- Buffalo. the Association for Corporate Growth New Jersey Chapter. The chapter served as one of the host holiday party. students to meetings and events free of ing the idea for 2008, but it is just one chapters of both the Mid-Atlantic charge during the year and awards three small way that we have improved the Regional Symposium and the Northeast New York [New York City] $1,000 scholarships to winners of an value proposition for our members.” Regional Conference and collaborated The abrupt turnabout in the credit mar- essay contest during its annual Student with the New York City Chapter on a kets had guests streaming through the Night. The 2007 event attracted a record The chapter’s annual Asset-Based NJ/NY certification program. doors of the Roosevelt Hotel for the New number of college and university stu- Lending Panel in March attracted more York City Chapter’s first annual dents and media coverage. than 225 attendees to hear leaders in The chapter improved corporate gover- Distressed Capital Connection, an event Boston’s financial community. Members nance procedures and laid groundwork co-sponsored with the Association for “This is an effort to broaden TMA’s expo- unwound during the daylong Beanpot for a TMAssist workshop and an educa- Corporate Growth. sure in the marketplace and introduce 2007 tournament, pitting hockey squads tional program on Enron. students to the many aspects of business from Boston College, Boston University, The TMA Northeast Chapter enjoyed Enjoying the holiday party are (L-R) Held in September just months after related to the turnaround industry,” said Northeastern University and Harvard. a New England tradition at the 2007 Stephen Mischo, Long Island Beanpot, a hockey match among The chapter’s annual golf outing raised Through its annual golf charity outing, Chapter board member; Mike the credit meltdown, the conference pre- 2007 Chapter President David Fiegel. Boston College, Boston University, Matlat, 2007 executive vice presi- money for the St. Peter’s Village orphan- sented Gene Sperling, Senior Fellow for the chapter raised nearly $50,000 for Northeastern University and Harvard. dent; Hernan Serrano, 2007 chapter age, which has purchased computers and Economic Policy at the Council on The 97-member chapter earmarked a two inner-city schools and a women’s From left to right are Mike Toner, president; and Jeffrey Wurst, chapter chapter member; Rick Mikels, a chap- shelter. board member. other items as a result of the chapter’s Foreign Relations. percentage of annual revenue to support ter board member; Sam Daume; and support. regional causes and donated $2,000 to Edward Krayer, a chapter member. “There were 400 attendees with many the Erie County Food Bank to replenish Northwest New York [Long Island] from private equity firms and hedge supplies after a storm. The chapter also The 259-member Northwest Chapter The Long Island Chapter welcomed into funds who don’t usually come to TMA adopted a plan for pro bono assistance instituted a scholarship program to pay its ranks business students from Adelphi events,” said 2007 Chapter President projects targeting nonprofit organiza- tribute to Mark Paben, whose untimely University’s School of Business and Jordan W. Siev. “We view this event as a tions. passing last year robbed his Seattle law launched a paid internship program. way for TMA to continue to be at the firm, K&L Gates, and the region of a MBA and undergraduate students forefront on the issues affecting our Northeast much loved and respected bankruptcy interned at valuation, turnaround and members, in this case the rapid change in The 524-member Northeast Chapter attorney, according to 2007 Chapter other chapter members’ firms. the credit markets, and a way to increase redesigned its website in 2007, offering President Conrad Myers, CTP. networking potential at TMA events.” easy access to job leads for members and Michael Imber, New York City “Students were very excited to have the news about professional advancement. A $1,000 scholarship will be awarded to Chapter vice president of program- ming, far left, and Jordan Siev, chap- opportunity to experience firsthand Dr. Edward I. Altman of New York university students who are children of ter president, far right, mingle with what the turnaround and restructuring University’s Stern School of Business and The chapter’s Career Opportunities chapter members. “Mark had an early speakers, Gene Sperling, Senior world is like,” said 2007 Chapter TMA’s Academic Advisory Council gave his Program (COP), launched in December pioneering role in convening insolvency Fellow for Economic Policy at the Council on Foreign Relations, and President Hernan Serrano. “We offered a annual talk on high-yield and distressed on www.tmanortheast.org, announces job practitioners from both sides of the Peter Schiff, president of EuroPacific unique experience that was not available debt markets at the start of the year. opportunities offered by sponsors and border to discuss cross-border insolvency Capital, Inc., at the debut of the first to students prior to our chapter’s The 918-member chapter sought to companies that employ members. Those law and was a pioneer for professional annual Distressed Capital Connection conference. involvement with the university.” The recruit more women and young profes- looking for work or needing to fill posi- legal education,” Myers said. chapter also donated $1,500 to the uni- sionals by hosting a wine/food tasting in tions can check 12 monthly listings on 16 17 North American Chapters North American Chapters

Chapter members mingled at the A pre-holiday party business workshop Philadelphia Chapter members and September Cross-Border Regional focused on economic trends affecting the guests gear up for the annual golf outing in September. Conference, which drew professionals turnaround industry and included break- from all points in the chapter’s foot- out sessions on enterprise valuation, print: Oregon, Washington, Alberta, and deepening insolvency and professional British Columbia, as well as other parts liability. The 11th annual golf outing was of the country. held at the Mayfield Country Club.

The conference, held at Portland’s chic Philadelphia Heathman Hotel, presented panels on The Philadelphia Chapter paid tribute to

2007 Northwest Chapter President restructuring trends affecting the the son of former TMA International Conrad Myers, CTP, and John region’s prominent industries, including Chairman Thomas D. Hays, III, CTP, Rizzardi, former TMA chairman and forest products and alternative energy. honoring the fallen firefighter and rais- Northwest Chapter president, enjoy a those graduating from any Philadelphia the expertise of representatives from relaxed moment at Elk Grove Vineyard Featured speakers were J. Isaac, senior ing $20,000 in scholarship dollars for during the Cross-Border Regional vice president for business affairs of the volunteer firefighters. high school. Temple students also could Keen Consultants LLC, Duane Morris Conference. Portland Trailblazers, and Toby Martin, vie for a $1,000 prize in the chapter’s LLP, MorrisAnderson and NatCity president of Calpine Canada, who dis- The Monte Carlo Night fundraiser, pro- annual case study competition. Investment Banking Special Situations cussed the company’s mega cross-border moted on a Comcast Newsmakers cable Group. The chapter also organized pro- insolvency case. television program that featured 2007 Through its fourth annual networking grams for professionals charged with Chapter President Randy Siegele, attract- dinner, the chapter collected $10,000 workouts, lending and dealmaking. Ohio ed 125 members. The 320-member chap- for the Make-A-Wish Foundation of The Ohio Chapter ramped up outreach ter met its membership goal, posted an Philadelphia and Southeastern Pennsyl- The 85-member chapter held its fourth to professionals under 40 years old. Its 85 percent renewal rate, and made vania, which satisfies wishes of seriously annual golf outing at the Fox Chapel first social networking event in 2007 was progress reaching out to women and ill children. Proceeds from the 11th Golf Club. open to nonmembers and billed as a young professionals. Activities included annual golf outing included $2,500 for way for young professionals to network networking with the Pennsylvania Bar the Mission for Educating Children with Tennessee with those outside their usual orbit. Association’s Commission on Women in Autism. The Tennessee Chapter added a work- the Profession, Younger Women’s Task shop on environmental issues impacting Another highlight for the 215-member Force, National Association of Women Pittsburgh transactions to its 2007 lunchtime meet- chapter was a presentation on ethics by Lawyers and Flex-Time Lawyers; a recep- Four bankruptcy judges participated in ing schedule. someone who learned the hard way. tion and museum tour at the Franklin the Pittsburgh TMA’s “Views from the Patrick J. Kuhse, the former stockbroker Institute’s “Tutankhamen and the Bench” program in November. “Environmental issues are coming up and entrepreneur indicted on 32 felony Golden Age of the Pharaohs” exhibit; more and more in all types of business counts including bribery, money laun- and an evening of good food and con- The speakers were Hon. Thomas P. transactions,” said 2007 Chapter dering and conspiracy, headlined the versation at Dolce, a popular Italian Agresti, Hon. Jeffery A. Deller and Hon. President Don Weathers. “We want to program, “From Prominence to Prison: restaurant. M. Bruce McCullough, all from the bring in new topics of discussion that Why Smart People Do Dumb Things.” Western District of Pennsylvania, and members are affected by, so we branched The chapter, along with the Chesapeake Hon. Patrick M. Flatley from the out.” Other programs drew from the year’s and New Jersey chapters, hosted the Northern District of West Virginia. news headlines on the credit crunch and TMA Mid-Atlantic Regional Symposium That meeting and others on lending and the subprime mortgage meltdown. The at the posh Borgata Hotel and Casino. “With every program we present several the economic forecast helped the chapter Hon. Kay Woods from the U.S. The chapter also organized a breakfast high-quality name speakers, whether a finish the year with 69 members. The Bankruptcy Court offered a refresher on panel on “The Evolving Role of the leader in the practice area, an expert on chapter retained its chapter administrator pre-petition indemnity contract clauses Turnaround Professional,” moderated by a particular subject, or a bankruptcy and made the position permanent. Ohio Chapter Member Bryan Farkas and post-petition litigation fees during Judge Kevin J. Carey, and co-sponsored judge,” said 2007 President-Elect James “Deborah Liles has been phenomenal,” (center) talks about chapter activities Weathers said. “We wanted to utilize her with a few prospective members. another event. the third annual Wharton Restructuring Van Horn. “We continue to grow, and Conference at the University of maintaining our quality programming talent for the long term.” Pennsylvania. remains one of our top priorities.” Texas [Central] The chapter earmarked $5,000 for schol- McCullough also joined a panel called One of TMA’s longest-running chapter arships to accomplished students in the “Asset Acquisition Issues in Turnarounds presidencies ended in 2007 after years of MBA program at Temple University and and Bankruptcies,” which also drew on thwarted attempts due to overseas 18 19 North American Chapters North American Chapters

engagements, job promotions and other “Michael has done a terrific job of estab- Milkes. “Because our members represent Attracting attendees from beyond state issues affecting president-elects. But lishing a great group in the Central a wide range of fields, we were able to borders, the conference presented lenders Central Texas Chapter President Michael Texas Chapter,” Patterson said. “Our provide that quality experience at a and judges panels and workshops on Parker held the office long enough to goal in 2008 is to leverage these nominal cost for attendees.” restructuring and private equity and savor the launch of the Texas Regional strengths and continue to grow.” hedge fund investing strategies. Conference. The chapter’s judges panel attracted four Texas [Dallas/Ft. Worth] Texas judges, and. a business radio jour- “This regional conference was a huge “That was our big coup,” said Parker, A judge’s remark about young lawyers nalist’s presentation dealt with the big accomplishment and a wonderful tem- who was succeeded by Bill Patterson late needing to sharpen their business sense stories of 2007 and possible 2008 head- plate established for the future for a in the year. “We had struggled for years spurred the Dallas/Ft. Worth Chapter to lines. For the first time, the 304-member region that is unique,” said 2007 Dallas/Ft. Worth Chapter President- to make it happen and finally pulled it action in 2007. chapter hosted a series of events with President-Elect Janine Salmon. “The three Elect Peter A. Franklin III, at lectern, chapters represent not only three differ- moderates a panel of bankruptcy off.” Dallas business groups to attract profes- judges for the Northern District of The result was the Corporate Renewal sionals 40 years old and younger. ent geographical areas of our state, but Texas. From right, Chief Bankuptcy Judge Barbara J. Houser, Judge D. The regional conference utilized the and Restructuring Boot Camp, a nine- also the very different economies that exist in Houston, Dallas and Austin/San Michael Lynn, Judge Harlin D. Hale resources of all three Texas Chapters – week case study program that covered Texas [Houston] and Judge Stacey G. C. Jernigan. Central Texas, Dallas/Ft. Worth and valuation, accounting, tax issues, loan The 239-member Houston Chapter spent Antonio. This event was a great success in Houston. Central Texas members were determination and more. Staffed by much of 2007 planning the inaugural bringing the Texas statewide TMA togeth- heavily involved in planning and the member volunteers, the program offered Texas Regional Conference organized er, as well as out-of-state participants, to experience provided “a great boost” to continuing education credits and attract- with the Dallas/Ft. Worth and Central gain knowledge about state and national member value. ed nearly 70 registrants, including sea- Texas Chapters. The May event came to turnaround industry developments and soned and new attorneys. The first-time fruition with support from a $10,000 best practices.” Parker, who moves to a board position joint venture resulted in the chapter TMA regional conference grant awarded in 2008, said he looks forward to winning an award from the American to the chapters for the first time. Patterson’s leadership and fresh ideas. Inns of Court, a legal organization. One came quickly. The 52-member chap- ter chartered a bus to drive members “Within a very short time, we appropri- In a fall 2007 meeting, sales coach Chuck Bauer (center) taught from Austin to San Antonio for the holi- ately responded to the judiciary’s Dallas/Ft. Worth Chapter members day party. concern for a quality educational experi- how to “Market Yourself ence,” said 2007 Chapter President Joe Shamelessly.” Joe Milkes (left), chap- ter president, helps Bruce Avallanet (right) the chapter board member who arranged for Bauer to speak, wel- come him to the meeting.

2007 Regional Conferences: Tabitha Moore, Chris Glatz, Education and networking nearby Florida Chapter Chicago/Midwest Chapter

NORTH AMERICA 1st Texas Regional Austin,TX May 14-16 Dallas/Ft.Worth, Houston, Central Texas Chapters 6th Annual Great Lakes Concord, OH May 17-18 Upstate New York, Detroit/Grand Rapids, Ohio, Pittsburgh Chapters Energetic administrators keep chapters humming 2nd Annual Southeast Myrtle Beach, SC May 31-June 1 Florida, Carolinas,Tennessee, Atlanta Chapters “Hiring a chapter administrator is the best thing our chapter ever did!” 5th Annual Mid-Atlantic Atlantic City, NJ June 6-8 Philadelphia, New Jersey, Chesapeake Chapters Chapter presidents sing the praises of professional help who keep up with 3rd Annual Northeast Saratoga Springs, NY August 29-30 Upstate NY, Northeast, New York City, Long Island, New Jersey, Andrea Pauson, Sharon Graber, the day-to-day details of running a busy chapter. They also serve as an Connecticut Chapters Chesapeake and Upstate New York invaluable institutional memory as chapter leaders cycle in and out. 1st Mid-America Oak Brook, IL September 20-21 Chicago/Midwest, Detroit/Grand Rapids, Upper Midwest, Missouri, Ohio Philadelphia Chapter Chapters Chapters Each January, administrators meet with TMA International staff to learn of 8th Cross Border Portland, OR September 27-30 Northwest Chapter new procedures and programs. Here are a few who attended the January INTERNATIONAL 2007 meeting in Las Vegas. United Kingdom London November 8 Australia Sydney November 15-16 Finland Helsinki October 3-4 Norie Sanchez, Carolinas Chapter

20 21 Communications Tools: Membership grows as economy declines Despite a slowdown in restructuring business during 2006 and the first half TMA story told far and wide of 2007, TMA membership exceeded expectations. The 2007 membership goal was 7,965 and by mid-November, TMA was 339 over goal, with 8,304 Communications awards let TMA New media relations program members. blow its own horn launched The 2006 TMA Annual Report received a In 2007, TMA began to gather volunteers As the 2007 Annual Convention in Boston approached, it became apparent prestigious Gold Trumpet Award from from chapters who agreed to become that TMA would hit an all-time membership high of at least 8,000 by year the Publicity Club of Chicago. The expert sources for end. The anticipation built as TMA board members wore buttons at the con- “What’s Up” theme, writing and design the news media. vention that said, “Who will be 8,000?” Within days of the convention, the won kudos from the judges, who gave it The goal is to answer came back: Clifton Moschnik, a vice president at Wells Fargo the highest award in the non-profit expand TMA’s Business Credit in Phoenix. annual report category. In addition, it reach geographical- Overall TMA Growth earned a 1st place in its category in the ly and into indus- Overall TMA Growth Illinois Woman’s Press Association and try segments to 9000 has been moved on to judging in the continue to make 8000 National Federation of Press Women TMA “the voice of 7000 Contest. corporate renewal.” More than 45 com- 6000 5000 pleted the required Orientation Webinar 4000 offered four times during 2007 and filled 3000 out a detailed profile. Several in the 2000 Media Expert Sources Program were used 1000 as opportunities arose during the year to 0

speak to reporters and write articles for the business media. Members

TMA AWARD-WINNER This new media kit, which outlined FEATURED IN TIME the benefits of advertising in The Journal 2007 Overall Membership 2007 Member Geographic TMA Public Relations staff suc- of Corporate Renewal, an event sponsor or cessfully pitched the dramatic Composition Breakdown exhibiting at the Annual Convention, story of R.G. Barry’s turnaround Auctioneer/Liquidator/Appraiser helped bring in more than $513,000 in International of Dearfoams slippers to a Time Attorney 5% 13% magazine Global Business section advertising, $454,000 in sponsorships 11% Northeast US writer. This story appeared in the and $226,000 in exhibitor fees during Consultant/Practitioner Western US 33% Miscellaneous 40% 13% June 2007 issue and features The 2007. 12% Meridian Group, the TMA 2006 Turnaround of the Year Award Lender Mid-Atlantic US winner. 15% THE JOURNAL OF 18% CORPORATE Financial Advisor/Investor Midwest US 17% 23% Vol. 20/No. 5 May 2007

WWW. TURNAROUND.ORG

T URNAROUND M ANAGEMENT A SSOCIATION ASSET-BASED LENDING Has Fundamental Change Delayed an Economic Downturn?

Little Change Expected “TMA has a completely open membership struc- in 2007 Credit Market The Sky Isn’ Falling ture, resulting in multidisciplinary membership…. Yet — But It Will Despite Uncertainty of When, Change is Certain Economy Spawns Even more remarkable is the size of firms repre- Worry, Complaints Tougher SEC sented…from sole practitioners to some of the Standards Are Blowing Up the PIPE-line Factors May largest companies in the world. And our geo- Provide Cash When Traditional Lenders Won’t graphic diversity is widespread, as home base for NEW! WELCOME TO CTP CONNECTION What Separates Successful Companies from the Also Rans? our members ranges from Texas to Taiwan and from New York to New Delhi.” Colin Cross, TMA 2007 Chairman

22 23 Brazil Weak U.S. Dollar Cornerstone

Chapters Easter Europe “Having met our Cornerstone 15 goal early China allows TMA to embark upon the next phase Hong Kong Licensing of the Cornerstone campaign and to actively Continuing seek proposals for leading-edge industry research and educational programming. I GrowthEducation encourage TMA members and academics to ...... submit proposals for Cornerstone 15 funding Debt Certification consideration.” Opportunity Ready to meet the future head-on Holly Etlin, CTP, 2007 Chair of the Cornerstone Council Brazil Weak U.S. Dollar 2007 CORNERSTONE COUNCIL CORNERSTONE 15 DONORS MorrisAnderson Expansion (as of December 31, 2007) NachmanHaysBrownstein, Inc. Holly Felder Etlin, CTP, Chair Abacus Advisors Group LLC Northern Healthcare Capital, LLC Paul Hastings Janofsky & Walker LLP InternationalChapters AlixPartners, LLC AccuVal Associates, Inc. Easter Europe American Management Advisors Inc. Penn Hudson Financial Group LLC Cornerstone Michael D. Chartock Anderson Bauman Tourtellot Vos Phelps Consulting Group In 2003, in conjunction with its 15th anniversary celebration, TMA China Gordon Brothers Group Andrew M. Toft, Attorney at Law Prime Locations LLC launched the Cornerstone 15 campaign, a five-year, $1.5 million effort to Quarles & Brady LLP Hong Kong ARG Recovery, LLC fund a board-designated endowment dedicated to research and continuing Arthur D. Perkins, Jr. Atlas Partners, LLC Quest Turnaround Advisors, LLC Licensing education initiatives for the corporate renewal industry. Deloitte Financial Advisory Services LLP Bank of America Business Capital RAS Management Advisors, Inc. Emerging Markets Bankers Advocate Group RCS Real Estate Advisors Republic Financial Corporation Educational In 2007, as TMA approached another milestone anniversary – its 20th Harold Kaplan BBK Growth DrinkerBiddleGardnerCarton Beane Associates, Inc. Rhone Group Advisors anniversary in 2008 – it did so having met its fundraising goal during 2006, Bederson & Co., LLP Riemer & Braunstein LLP Investors ...... one year early. It had already funded: Barry L. Kasoff, CTP Bond, Schoeneck & King, PLLC RJ Reuter LLC Business Consulting Russia Realization Services, Inc. Buccino & Associates, Inc. Rochelle, Hutcheson & McCullough, • $10,000 – The 13-Week Cash Flow Workshop, piloted by the Chicago/ Cadwalader, Wickersham & Taft LLP LLP Ruskin Moscou Faltischek, P.C. Endowment Midwest Chapter, and now available to all TMA chapters for their educa- Mitchell Drucker Cairncross & Hempelmann, P.S. CIT CapitalSource San Filippo & Associates, LLC tional programming...... Cedar Croft Consulting Ltd. SB Capital Group, LLC John Wm. Butler, Jr. Continental Advisory Services, LLC The Scotland Group, Inc. Debt • $10,000 – A call for research papers and prizes in conjunction with the Skadden, Arps, Slate, Meagher & Flom LLP Conway MacKenzie & Dunleavy Sullivan & Worcester LLP Certification Cooley Godward Kronish LLP Treadstone Partners, LLC Opportunity June 2006 Global Educational Symposium that brought together scholars and practitioners to discuss topics related to liquidity and corporate renewal. Edward I. Altman, Ph.D. CRG Partners Trimingham Inc. Brazil NYU Stern School of Business The Daley-Hodkin Group Tucker Arensberg, P.C. Weak U.S. Dollar Deloitte Financial Advisory Services LLP Wachovia Capital Finance • $10,000 – A webinar series that offers convenient, affordable education Daniel P. Wikel DLA Piper US LLP White Oak Group on timely topics such as U.S. Bankruptcy Code amendments, cross-border Huron Consulting Group DrinkerBiddleGardnerCarton Windham Professionals, Inc. Research Winston & Strawn LLP ...... distressed investing, subprime mortgages and tightening credit markets, and Executive Sounding Board Associates Inc. an economists’ roundtable. William G. Diehl, CTP Fennemore Craig, P.C. Wiss & Company, LLP Expansion BBK First American Corp. UCC Division XRoads Solutions Group Focus Management Group Chapters In 2007, the Cornerstone Council received a $50,000 grant proposal from Easter Europe Jack Rapp Forman Holt Eliades & Ravin LLC the graduate Business Turnaround Management Program at the University Abacus Advisors Group FTI Consulting, Inc. CORNERSTONE PROGRAM of Detroit Mercy to provide faculty support to develop teaching materials Getzler Henrich & Associates LLC DONORS China and syllabi for eight new electives. This is the first program to offer a Brent P. Hazzard Gordon Brothers Group, LLC Cornerstone Capital Donors Hong Kong master’s degree in Business Turnaround Management. It was approved in GE Commercial Finance Grant Thornton LLP ($100,000 and above) January 2008. Harney Partners, LLC Licensing Alan T. Handley Health Capital Investors, Inc. Bank of America Business Capital Emerging Markets Mesirow Financial Consulting, LLC Huron Consulting Group Gordon Brothers Group, LLC Jager Smith P.C. Huron Consulting Group Educational Lynn Hiestand JPMorgan Chase & Co. Skadden, Arps, Slate, Meagher & Flom LLP KPS Special Situations Funds Cornerstone Donors Growth (UK) Kugman Associates ($75,000 - $99,999) Investors Lake Pointe Partners, LLC CIT ...... The Meridian Group Russia Meriturn Partners, LLC Mesirow Financial Consulting, LLC India Midwest Business Capital

24 25 Cornerstone Cornerstone

Leadership Donors NatCity Investments/SSG Northern Healthcare Capital, LLC DONORS MAKE AWARDS POSSIBLE BUTLER-COOLEY ($50,000 - $74,999) Investment Banking The Parkland Group, Inc. EXCELLENCE IN Deloitte Financial Advisory Services LLP Philip + Company, Inc. Paul Hastings Janofsky & Walker LLP TEACHING AWARDS DrinkerBiddleGardnerCarton RAS Management Advisors, Inc. Penn Hudson Financial Group, LLC Teachers who are making a differ- Realization Services, Inc. RCS Real Estate Advisors Phelps Consulting Group ence in children’s lives are hon- Skadden, Arps, Slate, Meagher & Flom San Filippo & Associates LLC Phoenix Advisors & Collections, Inc. ored by TMA each year with a LLP Schulte Roth & Zabel LLP Phoenix Management Services, Inc. Wells Fargo Bank, N.A. Project Executive Group, Inc. $5,000 cash award made possible Sustaining Donors Wells Fargo Retail Finance Protiviti through the John Wm. Butler Foundation, Inc. This year’s win- ($25,000 - $49,999) Quest Turnaround Advisors, LLC ners clearly demonstrate how Abacus Advisors Group LLC Supporter Donors Renaissance Partners, L.C. teachers who love learning are Anderson Bauman Tourtellot Vos ($500 - $4,999) Republic Financial Corporation transforming classrooms and Bank of America Commercial Finance AccuVal Associates, Inc. RJ Reuter Business Consulting students all over the country. BBK Allomet Partners, Ltd. Rochelle, Hutcheson & McCullough, LLP Cooley Godward Kronish LLP American Management Advisors, Inc. RSM McGladrey Vana Richards, DoveBid Valuation Services Andrew M. Toft, Attorney at Law Ruskin Moscou Faltischek, P.C. Carberry DrinkerBiddleGardnerCarton ARG Recovery, LLC SB Capital Group, LLC Intermediate School Prof. Laura B. Resnikoff (center) was advisor to Mesirow Financial Consulting, LLC Bankers Advocate Group Sherman, Lavallee & Associates, LLC In addition to the Cornerstone donors in Emmett, Idaho, the Carl Marks Student Paper Competition’s First MorrisAnderson Beane Associates, Inc. State Securities PLC (United Kingdom) who make new education and research inspires her fifth- Place Case Study team from Columbia Business NachmanHaysBrownstein, Inc. Bederson & Co. LLP Sterling Supply Co. programs possible, a company and a School for their analysis of the Pier 1 restructur- grade students to Bond, Schoeneck & King PLLC Stout Risius Ross, Inc. Prime Locations LLC foundation fund two special award pro- ing plan. Attending the Annual Convention learn high-level The Scotland Group, Inc. Cairncross & Hempelmann, P.S. Strategic Management Partners, Inc. grams. The Carl Marks Advisory Group Awards presentation were, Hamid Benbrahim, scientific concepts by putting a whole Wachovia Capital Finance Caledonia Group Inc. Stutman, Treister & Glatt left and Laurent Grossi, right. Presenting were new spin on how it connects with LLC has supported the Carl Marks Wells Fargo Business Credit, Inc. Capital Restoration, LLC Sullivan & Worcester LLP Lisa Poulin, CTP, VP of University Relations (far their everyday lives. Through her CapitalSource TeamWork Technologies, Inc. Student Paper Competition since 2003 left), and Patrick Lagrange (far right), Carl Marks efforts, Carberry now has the designa- Benefactor Donors Cedar Croft Consulting Ltd. Tono-Bungay Consulting, Inc. for the best papers on corporate renewal Advisory Group. tion as a NASA Explorer School. ($10,000 - $24,999) Continental Advisory Services, LLC Treadstone Partners, LLC by students in master’s programs. Since Tucker Arensberg, P.C. AEG Partners, LLC CRG Partners 2004, a grant from the John Wm. Butler Majoice Thomas, a AlixPartners, LLC The Daley-Hodkin Group Winternitz, Inc. 10th grade Spanish Foundation, Inc. has funded the Butler- Atlas Partners, LLC Dickinson Wright PLLC Wiss & Company, LLP teacher at Little Rock Buccino & Associates, Inc. DLA Piper US LLP Cooley Excellence in Teaching Awards. (Ark.) High School, Cadwalader, Wickersham & Taft LLP EMCC, Inc. uses learning a new Corporate Renewal Services, Inc. Emerald Technology Valuations, LLC 2007 CARL MARKS STUDENT language to bring Executive Sounding Board Associates Fennemore Craig, P.C. PAPER COMPETION about social change Inc. The Finley Group and cultural aware- Forman Holt Eliades & Ravin LLC First American Corp. UCC Division THEORETICAL/CONCEPTUAL ness among her students. She helped FTI Consulting, Inc. Focus Management Group First Place: “The Bankruptcy arrange trips overseas for those who JPMorgan Chase & Co. Fort Dearborn Partners, Inc. Implications of Second Lien Loans” had never left the state through Lake Pointe Partners, LLC Getzler Henrich & Associates LLC Author: Gordon L. Su – University of Rotary International and for a Third Quarles & Brady LLP Gibson, Dunn & Crutcher LLP Pennsylvania Wharton School of Business World experience at home through Riemer & Braunstein LLP Giuliani Capital Advisors LLC Advisor: Prof. David Arthur Skeel Heifer International. Trimingham, Inc. Great American Group CASE STUDY CATEGORY Wells Fargo Foothill Harney Partners LLC Jeffrey Thompson White Oak Group Harvard Turnaround Management First Place: “Pier 1: Company Analysis teaches kindergarten XRoads Solutions Group The Hilco Organization and Restructuring” at Evergreen Hill & Gertner Capital Corporation Authors: Hamid Benbrahim, Rich Bozutto, Elementary on the Patron Donors Houlihan Lokey Howard and Zukin Laurent Grossi, Geoff Teillon, John Ure – U.S. Army base in ($5,000 - $9,999) HSG Services Inc. Columbia Business School Gordon Su (center), Wharton, receives a first Fort Lewis, Wash. Atwell, Curtis & Brooks, Ltd./University Jager Smith P.C. Advisor: Prof. Laura B. Resnikoff place prize of $3,000 for his paper, “The Most students have Management Associates & Joe Foster Real Estate Advisors Bankruptcy Implications of Second Lien Loans”, in a parent deployed in Second Place: the Carl Marks Student Paper Competition from Consultants Corp. KBK Financial, Inc. Iraq or Afghanistan, and 60 percent “Turnaround Analysis of Trump Lisa Poulin, CTP, TMA VP of University Aurora Management Partners Inc. KPS Special Situations Funds leave before the school year’s end Entertainment Resorts, Inc.” Relations (left) and Patrick Lagrange, Carl Bear Stearns & Co. Lain Faulkner & Co. because of a parent’s reassignment. Authors: Christian Blinkenberg, Sachin Marks Advisory Group (right). The Belet Group, Inc./ LBC Credit Partners, Inc. Yet about one-quarter of his students Kadakia, Michael Yao, Paul Zangrilli – Belet Acquisitions, Inc. McShane Group are reading second-grade material Columbia Business School Blank Rome LLP Mehmco Financial Services Inc. after 10 months, and most of the rest Advisor: Prof. Laura B. Resnikoff Carl Marks Advisory Group LLC The Meridian Group read at the first-grade level after five Conway MacKenzie & Dunleavy Meriturn Partners, LLC Honorable Mention: months. FINOVA Capital Corporation Michael Fox International Inc. “The Telecommunications Industry Horizon Management Inc. Midwest Business Capital Case Studies” Kugman Associates Miles & Stockbridge P.C. Authors: Evan Glucoft, Girish Satya, Andy The Nassi Group, LLC Modesitt Associates, Inc. Yang – The University of Chicago Graduate The Nauset Group, Inc. School of Business

26 27 Brazil Weak U.S. Dollar Education India Chapters Easter Europe China Creating nimble thinkers 2007 Webinars: Education at your desktop Hong Kong In such a fast-paced industry, those who succeed are alert to shifts in the April 30: “Scouring the Earth: Cross-border distressed investing” Licensing restructuring landscape and the business cycles. In 2007, TMA’s Education June 19: “Subprime Mortgages: How did it happen and what does it mean? Emerging Markets and Conference Committees closely monitored the business environment July 24: “Mega Billion Dollar Buyouts: Source of deal flow for the middle market” September 19: “Current State of the Loan Markets: Hiccup, turmoil or credit crunch?” Educational and responded quickly by developing new webinars, launching a new one- November 20: “Economists’ Roundtable: Solid footing or fundamental shift?" Growth subject conference dedicated to distressed investing, and enhancing the ...... award-winning The Journal of Corporate Renewal to keep members informed Debt on timely issues. Certification DISTRESSED INVESTING CONFERENCE Opportunity Brazil TMA members rank the educational, networking and leadership opportuni- Winning big in Las Vegas Weak U.S. Dollar ties as the most highly valued benefits of belonging to TMA. For members A unique partnership between the Turnaround Management Association whose practice is local, participation at the chapter level makes for an and The Deal, LLC, a diversified media company, produced the inaugural Expansion affordable, focused approach. The combined efforts of several chapters for Distressed Investing Conference at the Wynn Las Vegas, January 17-19, 10 regional conferences are another choice for education and networking in International 2007. By combining the strengths of both organizations to link corporate Chapters a wider setting. For those who have, or aspire to have, a national and global Easter Europe restructuring professionals with corporate dealmakers, this conference footprint, influential contacts and expanded horizons were available at TMA attracted nearly 450 key players in the distressed investing arena. China International conferences. Before his keynote address, former U.S. Secretary of State James A. TMA springs into action at Dallas conference Baker (center) mingles with other VIPs: (from left) Hugh Ray, Andrews “What You Need to Know NOW” set the tone for a fast-paced conference Kurth LLP; TMA Executive Director that addressed everything from industry segment changes to use of electronic Linda Delgadillo; Baker; TMA tools and the rapid rise in new lending options. Held at the Four Seasons Chairman Colin Cross, and Kevin Worth, CEO, of The Deal...... Resort and Club at Las Colinas, March 28-31, it was the perfect spring get- away for the nearly 400 attendees who were able to network and update their professional skills in a beautiful setting. Educatio...... n Certification Carol Jendrzey, who co-chaired the Spring Opportunity Conference with William Synder, introduces the keynote speaker, the Hon. Edward C. Prado (left), Brazil U.S. Court of Appeals for the Fifth District, to Weak U.S. Dollar Professor Dar-Yeh Hwang from the National Taiwan University. International “The more senior debt you buy, the more expensive… [but] if you buy debt that’s too junior and it doesn’t work out, Expansion you bought the pig in the poke.” ...... Frank Merola, Stutman, Treister & Glatt Chapters Kurt Eichenwald, Dr. Daniella Saltz, PC, moderator of the “Alternative Equity Easter Europe author of Conspiracy of counsel to Ford Plays” panel. Fools: A True Story, Motor Company, speaks about corpo- shares her experi- James H.M. Sprayregen, China rate scandals, and ences in dealing with Goldman Sachs & Co., how and why they troubled suppliers Hong Kong moderates a panel that dis- happen. and other bankruptcy cusses the decrease in Licensing issues affecting the credit quality. Emerging Markets company. Tennis and golf are “While we initially expected to see about 200 Penny Friedman, CIT Business Educational popular events of TMA attendees for this first-time event, we were Capital, speaks on a panel about the Growth spring conferences. thrilled to have a final count of 438 at the Distressed Investing automotive industry. Investors Conference. We accomplished our goal of strategically broadening ...... our appeal to investors, private equity groups, distressed debt traders Russia and other capital providers….The ability of our restructuring profes- India sionals to support these investors is proven every day in the field.” Debt Colin Cross, 2007 TMA Chairman 28 29 Brazil Weak U.S. Dollar Annual Convention India Chapters Easter Europe China Evolution and revolution in historic city HongLicensing Kong TMA met October 16-19 at the Boston Marriott Copley Place in the historic Emerging Markets city where a “tea party” sparked the American Revolution. At the Annual Convention, it was apparent that more than 1,000 attendees were getting a Educational glimmer of the revolution in their own industry. Four keynote speakers, an ...... Growth economists’ roundtable, two general sessions and 11 concurrent sessions Russia armed attendees with new intelligence, skills and contacts to face an uncer- Debt Certification tain future. Receptions, award presentations and the hospitality of a proud Opportunity Boston Convention Chair and past TMA Chairman Ward K. Mooney, made 1 Brazil an event to be remembered. Weak U.S. Dollar ...... 1. When the moderator is Kevin O’Connor, host of the TV series This Expansion Old House, you know that this is not the usual Economists’ Roundtable discussion. The blue–ribbon panel and the audience enjoyed the good information and lively conversation with (L-R) Dr. Edward I. Altman, NYU Stern School of Business; Jeffrey Fuhrer, Federal Reserve Bank of Boston, and Dr. Warren Jestin from Emerging Markets Scotiabank in Toronto. Educational 2 3 2. Keynote speaker and best-selling Growth author of Good to Great Jim Collins Russia (center) makes a point during the Q&A session with TMA President Bill Skelly (left) and TMA Chairman Annual Colin Cross. Convention 3. Former U.S. Congressman Richard Gephardt visits after his ...... keynote address with (from left) Ward Mooney, chair of the Annual Convention and Charley Otto from Certification The quick wit of CBS Sports golf commentator 4 5 New York. Opportunity David Feherty entertained the attendees of the Friday night awards dinner. Brazil 4. Diversity in gender and race in Weak U.S. Dollar corporations makes for good busi- ness, according to panelists Effenus International Henderson, chief diversity officer for Weyerhaeuser Company, and Holly Expansion Kaczmarcyk with Wachovia Capital ...... Finance. Chapters 5. The TMA Exhibit Hall is always a Easter Europe good place to kick back with your friends, check your text messages, China pick up giveaways and look for new business contacts. Hong Kong Licensing 6. It’s rare to have so many past TMA chairs all in one place, but nine Emerging Markets attended the Annual Convention and paused for a group photo. The are Educational (front row, L-R) Peter L. Tourtellot, CTP; Gilbert C. Osnos, CTP; Gerald Growth P. Buccino, CTP; William J. Hass, CTP; (back row, L-R) Ward K...... Investors Mooney; Thomas J. Allison, CTP; Investors Randall S. Eisenberg, CTP; John R. Rizzardi, and Holly Felder Etlin, India 6 CTP. Debt 30 31 Brazil Weak U.S. Dollar Awards India Chapters Easter Europe TRANSACTION OF THE YEAR AWARDS OUTSTANDING INDIVID- China Inspirational, innovative, distinctive: The two 2007 Transaction of the Year Award winners are a study in contrasts. UAL CONTRIBUTION Hong Kong On one hand is a complex transaction forged among those with disparate Anthony M. Bergen, CTP, for- Licensing merly at Huron Consulting Group Emerging Markets TMA Award Winners interests in Nevada’s largest bankruptcy case in history. The other involves protecting the retirement and net worth of 200 employees in a failing cheese and now at TETC Power, and Educational company in a small Wisconsin town. Kathleen Z. Lepak, Citi, were Growth selected as the 2007 Outstanding ...... Sale of USA Commercial Mortgage Company, Individual Contribution Award Russia Debt a commercial lender, headquartered in Las Vegas, Nevada. recipients from among the 8,100 Certification • Thomas J. Allison, CTP, William J. Fasel, and Susan M. Smith, Mesirow Financial members in 43 TMA chapters Opportunity Interim Management, LLC; Annette W. Jarvis, Ray Quinney & Nebeker; and Eve H. worldwide. This award is given to Brazil TURNAROUND OF THE YEAR AWARDS Karasik and Frank A. Merola, Stutman Treister & Glatt PC. individuals whose dedication and Weak U.S. Dollar ...... Companies that we rely on to fill our grocery carts, put foam in our mat- Sale of Antigo Cheese Company, producer of hard Italian cheese, Antigo, Wisc. commitment have made a lasting Expansion tresses, build components of the aircraft we fly on, construct huge steel • Jim Harney and Mike Garvey, Harney Management Partners contribution not only to TMA but buildings large enough to store jet planes, make the metal on our cars shiny, also to the corporate renewal industry. InternationalChapters and package our potato chips might not exist today if not for the efforts of Easter Europe the 2007 Turnaround Award winners. They include: Tony Bergen, China Mega Company Turnaround: Winn-Dixie Stores, Inc., a chain of grocery stores CTP, was one of Hong Kong headquartered in Jacksonville, Fla. the 200 original Licensing • Paul P. (Flip) Huffard, The Blackstone Group members when Emerging Markets • Holly Felder Etlin, CTP, formerly with Xroads Solutions Group LLC TMA was found- • D.J. Baker, Skadden, Arps, Slate, Meagher & Flom LLP ed in 1988 and in Educational • Stephen D. Busey, Smith, Hulsey & Busey the second class Growth of professionals earning the Large Company Turnaround: Foamex International Inc., manufacturer of flexible Russia Certified Turnaround Professional polyurethane and advanced polymer foam products, headquartered in Savannah, Ga. (CTP) designation in 1995. His • Gregory J. Christian, Foamex’s CRO continued involvement in the Awards Mid-size Company Turnaround: Stellex Aerostructures, Inc., provider of subsys- CTP program has made a major ...... tems and components for the aerospace, defense and space industries, in Lebanon, N.J. This team effected the sale of USA Commercial impact on the industry. He led a • Raynard D. Benvenuti, Concord Investment Partners LLC Mortgage Company to earn the Large Company CHAIRMAN’S AWARD smooth transition after the Transaction of the Year Award. Presenting are Certification “I can’t think of a more deserving individ- merger of the Association of Mid-size Company Turnaround Honorable Mention: Kuntz Electroplating, Inc., Rob Katz (far left), CTP, VP of Public Affairs, and Certified Turnaround Professionals Opportunity provider of metal finishing for original equipment manufacturers of steel and aluminum Chairman Colin Cross (far right) to (L-R) Frank ual to receive this award,” Colin Cross with the TMA. Brazil components, located in Kitchener, Ontario, Canada. Merola, Eve Karasik, Tom Allison, CTP; Annette said about his choice for the prestigious • Tom Harig and Joe Zito, The Keystone Group Jarvis, William J. Fasel and Susan Smith. Chairman’s Award. Richard M. Weak U.S. Dollar McMahon, executive vice president of Kate Lepak is International Small Company Turnaround: EagleSpan Steel Structures, manufacturer of steel Wells Fargo Business Credit in Boston, known through- frame structures in Loveland, Colo. was singled out for his leadership in the out the banking • Thomas M. Kim, r2 advisors, llc asset-based lending field, the Northeast industry as a Expansion strategic market- International Company Turnaround: Treofan Germany GmbH & Co., KG, a Chapter, and in his community. The golf ...... tournament he heads has raised nearly ing expert in the manufacturer and supplier of polypropylene films in Raunheim, Germany. asset-based lend- Chapters • Peter A. Briggs, Alvarez & Marsal $400,000 for three local charities. Easter Europe ing and corporate finance field. Her leadership in TMA, serving A patchwork of insolvency laws China and history of liquidations of trou- three vice presidencies: bled companies in Europe faced Education, University Relations Hong Kong Peter Briggs, Alvarez & Marsal, and Chapter Relations, led to Licensing as he took on the turnaround of enhanced relationships between Treofan Germany GmbH & Co., James Harney (center) accepts the Mid-Size chapters, Emerging Markets KG. Up to the challenge, Briggs Transaction of the Year Award from VP of Public universities and TMA internation- and his team quickly brought the Affairs Rob Katz, CTP (left) and Chairman Colin al. She is considered a mentor to Educational company back to its market lead- Cross (right). The successful transaction between ership position and claimed the Satori Foods and Antigo Cheese Company pro- many who became active in TMA Growth 2007 International Company tected 200 employees’ jobs, paid a 100 percent because of her encouragement. Investors Turnaround of the Year Award, premium on its ESOP shares, and saved a good ...... presented by President Bill Skelly customer for 100 local dairy farms in Wisconsin. Investors (left) and Chairman Colin Cross India (right). Debt 32 33 Brazil Weak U.S. Dollar Moving Forward India Chapters Easter Europe China Making strategic moves quickly, but with 2. Technology: Develop online educa- “Just as great TMA International Headquarters, companies Hong Kong 150 S. Wacker Drive, Suite 900, tion capabilities, further develop Licensing careful planning Chicago, IL archives and search capabilities for web continuously Emerging Markets The year 2007 was one of bold moves, taken after months of content, establish a technology task assess their Educational advance planning. force to investigate future opportunities. strategic Growth 3. International Expansion: direction to ...... Evaluate the international financial maintain their competi- Russia Merger of ACTP into TMA Debt Effective December 31, 2007, the Association of Certified Turnaround model, add new chapters, increase travel tive edge, so too must Certification Professionals merged into the Turnaround Management Association. This budget, hold an international regional TMA review and refine its Opportunity merged the separate entity, established in 1993 to develop and administer conference, evaluate CTP integration. long-term plans to ensure Brazil the Certified Turnaround Professional program, into the TMA, which had Weak U.S. Dollar 4. Key Players: Create a task force to it remains a leader in the been marketing the program. Created to provide an objective measure of ...... evaluate needs of key players from large industry.” Expansion the experience, knowledge and integrity that is necessary to conduct corpo- rate renewal work, the CTP program can now take advantage of the broad firms and a strategy to reengage them in Linda Delgadillo CAE, skills of the TMA staff to more efficiently administer the program. TMA. TMA Executive Director InternationalChapters Easter Europe The academic affiliation with Dr. James K. Seward and the University of China Wisconsin-Madison Graduate School of Business remains as an important 20th Anniversary Celebration “Our strategic plan will help us enhance TMA’s Hong Kong differentiation from most other certification programs and aligns it with What more appropriate location to cele- Licensing similar executive education programs. Dr. Seward will continue to update brate the 20th anniversary of TMA and relevance and Emerging Markets the Body of Knowledge, teach review courses and test candidates. the whole turnaround management, value propo- Educational restructuring and distressed investing sition for our A Certification Oversight Committee, independent of the TMA, will oversee industry than the city that has under- members. Growth standards and education and its president will serve in a new position as gone its own restructuring? TMA’s It also focuses TMA Vice President of Certification. Annual Convention in New Orleans, on support Moving Although critical mass has already been attained, with 413 TMA office moves to larger quarters October 27-29, will highlight an indus- for chapters as well as Landlocked with no space to grow, the TMA try that TMA has helped develop and addresses technology, Certificate holders by the end of 2007, the Task Force that International headquarters relocated from 100 S. recommended the merger also proposed that future efforts Wacker Drive in Chicago next door to larger define for the past 20 years and will globalization and demo- Forward should be directed toward increasing CTP holders in large quarters at 150 S. Wacker Drive in July 2007. induct the inaugural honorees in the graphic changes.” Russia firms, establishing CTP programs internationally and new Industry Hall of Fame. Arthur Perkins enhancing the recognition of the value of CTPs by end users. 2008 TMA President Certification Strategic planning goals set Opportunity Past and present industry leaders will Early in 2007, Ron Reuter, chair of the Brazil gather to hear keynote speakers Ret. “What is the point of “Why certification? There used to be an expression Strategic Planning Committee, assem- Weak U.S. Dollar Gen. Colin Powell, Bob Woodward of growth? Is it just for that ‘the best thing about being a banker, lawyer or bled eight teams to address various TMA The Washington Post, and Chris Gardner, growth’s sake?...In the International accountant is that if you ever got fired, you could program areas and to prepare back- author of The Pursuit of Happyness, and process, we welcome into always add Inc. after your name and become a ground and analysis reports for a June Expansion comedian Dana Carvey at the Industry our fold other ...... turnaround guy.’ This tongue-in-cheek reality led Board of Directors meeting. These teams Celebratory Dinner. professionals to the demand for certification.” then moved ahead with action reports, Chapters who, like us, Randall Wright Patterson, taking into account the results from Easter Europe care about CTP, past TMA vice president of ACTP Relations and past Board, chapter leadership and member- Chicago/Midwest Chapter president companies in ship surveys. After daylong meetings China crisis and can with the teams in Chicago and New Hong Kong Two of the leaders orchestrating benefit from improved York, strategic initiatives were prioritized Licensing the ACTP/TMA merger were (L-R) connections and profes- Peter Tourtellot, CTP, 2005 ACTP into four areas for implementation Emerging Markets sional development.” chairman and 2008 president of between 2008-2010. TMA’s Certification Oversight Lunelle Siegel, 2008 TMA Vice Educational Committee; and Tony Bergen, 1. Education: Expand webinars, update President of Membership, whose CTP, 2007 Chairman of the ACTP. goal is to reach 8,739 members and create new programs to be delivered Growth in 2008 Investors by chapters, launch online education, ...... investigate an educational partnership Investors model for chapters. India Debt 34 35 Brazil Weak U.S. Dollar 2007 Board India Chapters Easter Europe The Turnaround Management Association’s audited financial statements for 2007 are China complete. TMA received an unqualified opinion from its new auditors Porte Brown LLC. 2007 TMA International Board of Directors Hong Kong There were no changes to accounting policies adopted for 2007. OFFICERS Nicholas Franke Andrew Meehan TMA Board Alternates Sponsorship and Advertising Chairman President, Missouri Chapter President, United Kingdom Alex Jurshevski Oversight Committee Licensing Colin P. Cross TMA Frank R. Mack, CTP Doug Cheyne, Chair Emerging Markets The financial strength of the organization is reflected in the $1,568,887 of undesignated Gary Franko Beverly Weiss Manne President President, Toronto Chapter Lorenzo Mendizabal Lunelle Siegel INTERNATIONAL Educational unrestricted net assets at the end of the year. This reflects an increase of more than William E.J. Skelly RELATIONS COMMITTEE $250,000 over the previous year. This enabled TMA to invest in some long-term strategic Kenneth Frieze Frank Merola BOARD COMMITTEES Gordon W. Johnson, Vice ...... Growth Immediate Past Chairman Audit Committee President, International Russia initiatives that will pay off in future years. We continue to grow our reserve amount in Holly Felder Etlin, CTP Karen Giannelli Joe Milkes Howard B. Brownstein, Relations President, New Jersey President, Dallas/Ft Worth CTP, Chair Debt conjunction with the growth of our organization, while balancing TMA’s commitment to Vice President, ACTP Chapter Chapter MEMBERSHIP COMMITTEE Relations Executive Committee Cathy L. Reece, Vice Certification membership services. Stephen B. Mischo Opportunity Arthur T. Perkins, Jr. Daniel F. Dooley, CTP John E. Goldthorpe William E.J. Skelly, Chair President, Membership Brazil 2007 Vice President, Vice President, Chapter Margaret M. Good, CTP Conrad Myers, CTP Nominations Committee Chapter Membership Council The net assets of the board-designated Cornerstone Fund at year-end totaled more than Weak U.S. DollarFinance Relations President, Northwest Holly Felder Etlin, CTP, Cathy L. Reece, Chair ...... $1,650,000. On an exciting note, during 2007 our Cornerstone 15 Fund identified a sig- Jeffrey Wurst Harvey Gross Chapter Chair Diversity Subcommittee China nificant grant awarded to the University of Detroit Mercy to develop, deliver and sustain a Vice President, Conferences Sean Gumbs Frank Nikolaus Operations Committee Faye B. Feinstein, Chair J. Scott Victor President, Germany TMA William E. J. Skelly, Chair Business Turnaround Management Program. This master’s degree program is the first of Dhruba Gupta Membership Resource its kind to be developed and a milestone in TMA’s contribution to the industry. The grant Vice President, Education President, India TMA Patrick O’Keefe, CTP Strategic Planning Committee ...... Financial Patrick C. Lagrange Committee Lorenzo Mendizabal, Chair of $50,000 will be awarded as the program is rolled out during 2008. Mark Gustafson Lanis O’Steen Ronald J. Reuter, Chair Vice President, Finance President, Colorado Chapter President, Nevada Chapter Membership Marketing Report Arthur T. Perkins Jr. CHAPTER RELATIONS Committee Michael M. Parker Hong Kong Other events in 2007 impacting TMA’s finances included continued support for regional Michael J. Hausman, CTP COMMITTEES Carol Jendrzey, Chair Vice President, International President, Detroit Chapter President, Central Texas Jeffrey Wurst, Vice President, conferences and certain chapters through direct grants and relocation of TMA’s headquar- Relations Chapter Chapter Relations Membership Services ters to larger space during a dip in the market for rental rates. Our first Distressed Gordon W. Johnson Brent P. Hazzard Committee Emerging Markets Jari Pirinen Chapter Presidents’ Council Margaret M. Good, CTP, Investing Conference was very successful, producing an additional $500,000 of revenues Vice President, Membership Thomas S. Henderson President, Finland TMA Mark Indelicato, Chair Chair Educational Cathy L. Reece through registration fees and sponsorships. Raoul Heredia Robert Rakowski Chapter Resource & PUBLIC AFFAIRS Growth Vice President, Public Affairs President, Montreal Chapter President, Connecticut Response Council COMMITTEES Opportunity Robert D. Katz, CTP Chapter Tracy Sandler, Chair Robert D. Katz, CTP, Vice N. Lynn Hiestand President, Public Affairs Vice President, University Ronald J. Reuter EDUCATION Relations Hon. Barbara J. Houser COMMITTEES Awards Committee Revenue for the year ended December 31, 2007, Victor D. Russo Lisa M. Poulin, CTP Patrick C. Lagrange, Vice Christopher A. Curtin, Statement of Financial Position totals $4,971,000. A breakdown of its sources and Thomas A. Howley President, Education Chair revenue Tracy C. Sandler (Audited) December 31, 2007 how it is used follows: Secretary President, Houston Chapter Gayle P. Ehrlich Hernan Serrano Webinar Committee Chapter Public Relations Joseph Hutchinson President, Long Island Frank R. Mack, CTP, Chair Council DIRECTORS President, Ohio Chapter Chapter Scott Opincar, Chair Assets revenue Edward “Hank” Arnold III Education Services Task Force Cash and cash equivalents $ 2,498,110 Dar-Yeh Hwang Prof. James B. Shein Stephen B. Mischo, Chair Editorial Advisory Board – Accounts receivable, net 196,163 Jerry “Dale” Belt, CTP President, Taiwan TMA Journal of Corporate President, Arizona Chapter Randall W. Siegele CONFERENCE Renewal Mark Indelicato President, Philadelphia COMMITTEES Mark Barbeau & Vincent J. Assets held for Board Designated Cornerstone Fund Anthony M. Bergen, CTP Chapter J. Scott Victor, Harper, Co-Chairs Cash and cash equivalents 1,413,257 Carol E. Jendrzey Vice President, Conferences Pledges receivable, net 237,696 Paul Blutter Jordan Siev Public Relations Committee President, Chesapeake Lisa Johnson President, New York City Annual Convention Lunelle Siegel, Chair 2007 Revenue Chapter President, Chicago/Midwest Chapter Committee Prepaid expenses and deposits 403,419 Chapter Ward Mooney, Chair Media Expert Sources Investment and other revenue 3% I Equipment, net 104,726 Noel Boeke Bruce Sim Subcommittee Board-designated Cornerstone Fund 1% Investments 210,039 I President, Florida Chapter Michael Knight President, Atlanta Chapter Distressed Investing Tony Natale, CTP, Chair Journal advertising and subscriptions 11% I Conference Conferenceex psponsorshipsense and Howard B. Brownstein, CTP Theodore L. Koenig Anker Sorensen Frank Merola and James Public Information Total Assets $5,063,410 President, France TMA H.M. Sprayregen, Campaign Subcommittee registration fees 45% I R. Timothy Bryan Yoshinobu Konomi Co-Chairs Susan Balaschak, Chair Membership dues 40% I President, Japan TMA Michael R. Stewart Liabilities Russell K. Burbank, CTP President, Upper Midwest Spring Conference TMAssist Subcommittee Accounts payable and accrued expenses $634,633 expense President, Northern Mette Kurth Chapter Committee James Ross, Chair Deferred membership dues 667,282 California Chapter President, Southern William Snyder, CTP, and California Chapter Ronald R. Sussman Carol Jendrzey, Co-Chairs Trend Watch Subcommittee Other deferred revenue 285,525 Saul E. Burian Thomas S. Henderson, Capital lease obligations 69,679 Nomalizo Langa-Royds Don Weathers Conferences Committee Chair Other liabilities 106,451 Schon G. Condon President, Southern Africa President, Tennessee Chapter J. Scott Victor, Chair President, Australia TMA TMA UNIVERSITY RELATIONS Steven J. Weisz FINANCE COMMITTEES COMMITTEES Total Liabilities $1,763,570 Christopher A. Curtin Pamela N. Linton Arthur T. Perkins, Vice Lisa M. Poulin, CTP, Vice Mark Welch President, Finance President, University Robert N. Dangremond, Vincent J. Liuzza, CTP President, Pittsburgh Relations Net Assets - Unrestricted CTP President, Louisiana Chapter Chapter Committee on Finance Designated for Cornerstone Fund $ 1,650,953 David E. Mack, CTP Academic Advisory Council Faye B. Feinstein John Magee, CTP Jeffrey M. Wolf Edward I. Altman, Ph.D., Designated for Member Database Development 80,000 2007 Expenses Undesignated 1,568,887 President, Carolinas Chapter Cornerstone 15 Committee Chair Member services and programs 18% I David Fiegel Randall S. Eisenberg, CTP Holly Felder Etlin, CTP, Chapter membership dues allocation 9% I President, Upstate New York Hon. Robert D. Martin Ex Officio – ACTP President Chair Carl Marks Student Paper Total net assets 3,299,840 Information and public awareness 15% I Chapter Competition Committee James B. Matthews Linda M. Delgadillo, CAE Cornerstone Council Dr. James P. Neelankavil, General, administrative and membership 25% I Total Liabilities and Net Assets $5,063,410 Scott Fiore Ex Officio – TMA Executive Holly Felder Etlin, CTP Chair Conference 33% I President, Northeast Chapter Matthew McBrady, Ph.D. Director Chair 36 37