Abraxas Group’s Restructuring Recap is a synopsis of recent articles touching on issues of value enhancement, restructuring and turnaround as they apply to middle market companies.

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Pacific Sunwear Exits Bankruptcy on
Firmer Ground
Restructuring Recap
September 11, 2016
David Johnson
Interim Executive (CRO, COO, CFO)
Value Enhancement, Restructuring and Turnaround Advisor

2. “By three methods we may learn wisdom: First, by
reflection, which is noblest; Second, by imitation, which is
easiest; and third by experience, which is the bitterest”
‒ Confucius
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3. Pacific Sunwear’s emergence from bankruptcy, with backing from private equity firm Golden Gate Capital,
illustrates that risk capital has not abandoned mall-based retailers, and that companies with a reason to
exist, even those operating in troubled sectors, will continue to attract support.
Pacific Sunwear Exits Bankruptcy on Firmer
Ground
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Links (here, here)
Twitter: @RetailDive
Retail Liquidations
Company Peak Store Count Liquidation Year
KB Toys 1,300 2009
Borders 1,100 2011
Fashion Bug 1,000 2013
B. Dalton 777 2010
Mervyn’s 266 2008
Tweeter 180 2008
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4. Adaptation to Disruptive Change
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• As the pace of technological and business model disruption intensifies, company boards, CEOs,
leadership teams, and other key stakeholders must increasingly focus on developing an organizational
capacity for adaptation.
• By first identifying the phases of disruption, and then mapping leadership action steps, an effective and
versatile playbook can be developed for companies regardless of the particular shape of the disruption
facing their industry.
Link
Twitter: @AlixPartnersLLP
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5. The catalyst for San Bernardino’s bankruptcy could
fairly be said to be the city’s dysfunctional
governance model, which includes a hybrid of the
mayor / council and city manager models, resulting
in a diffusion of authority.
The Story Behind San Bernardino’s Long
Bankruptcy
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Link
Twitter: @LizFarmerTweets
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6. Navistar Steps Off The Bankruptcy Brink With
Volkswagen Partnership
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$256MM Investment byVolkswagen
Link
Twitter: @AntoineGara
$500MM Savings through 2021
Navistar’s recent announcement of an investment
by and joint venture with Volkswagen is helping the
company move past its failed diesel technology
bet, which critics termed “the diesel version of
Betamax”.
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7. Hanjin Wins U.S. Bankruptcy Shield,Allowing
Cargo Off Ships
• Troubled Korean shipping company Hanjin Shipping Co., was granted protection under chapter 15 of
the U.S. bankruptcy code on Friday. The company’s distress has stranded $14 billion of goods on its
container ships, threatening to disrupt the supply chains of companies across the globe.
• Hanjin has been in talks with primary lender Korea Development Bank and shareholder Korean Air
Lines Co., for additional support, but in the context of a troubled global shipping market facing
overcapacity, market watchers are questioning what if any assets of the company might be desirable.
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Links (here, here)
Twitter: @TiffanyKary
Hanjin Shipping Highlights
• 2.9% global market share in shipping
• $14 billion in goods stranded
• 141 ships
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8. • David Johnson is a career change agent who has served as interim
manager or financial advisor on over $5 Billion of distressed middle
market transactions.
• In his nearly 20 years as a change agent, David has served as an advisor,
board member, interim manager, investor and operator at
organizations ranging in size from pre-revenue startups to the Fortune
500.
David Johnson
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Email: david@abraxasgp.com
Ph: 312-505-7238
Twitter: @TurnaroundDavid
Abraxas Group LLC
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