CROs formulate solutions to financial and operational problems, as well as week the support of lenders. By engaging a CRO, a company looks to add a person who can implement controls, identify profit improvement strategies, secure financing, structure a turnaround and gain stakeholder support
Chief Restructuring Officer
Bringing a Chief Restructuring Officer (CRO) on board has become a cornerstone of turnaround practice in the US, and more recently has made a successful transition into European corporate culture. The increasing trend of adding a CRO into a faltering company to take an executive role to execute a turnaround plan is now firmly established.
you conveniently left out the last 5 words of the sentence... "or to restructure a company"
Bayside (the creditor) didn't see Mr,. Dolan acting enough with change or selling any divisions to regain profitability.
When a business is in turmoil and the Chief Executive Officer ("CEO") has his (her) hands full addressing the day to day problems, the best solution could be the introduction of a Chief Restructuring Officer ("CRO"). Today, the financial community recognizes the importance of companies hiring a CRO because a CRO helps creditors and shareholders gain more confidence, and more importantly, has the experience and knowledge to help stabilize a business that leads to increased value.
Many times the initial reaction to the suggestion of an outside CRO is the fear that existing management and employees will resist change. Our experience is quite the opposite. Most employees know, before they are formally told, that the company is experiencing problems and are very anxious to try new things to reverse momentum and get the company back to profitability.
The CRO's key responsibility is to make sure the process moves forward in a focused fashion. This is very comforting to nervous employees because they begin to see a new vision and a way out of the existing dilemma.
It is important for the CEO to realize there will be resistance but we have discovered if the CEO makes it clear that the CRO has the authority to carry out his responsibilities, hearts and minds will follow. The second tier of management can not do it themselves because they may be part of the problem and they will focus instead on protecting their own positions.
Under the Restated Credit Agreement, Bayside Capital, Inc. which currently holds a majority of the indebtedness required DM to engage a chief restructuring officer.
I've seen it many times where the ask is taken out and just now up to .42 cents, yet within seconds a new ask is put .001 above the bid
Last .42 0
DM looks like a better buy now after the ammendment to it's credit agreement than it did before when trading in the .70 cent range. imo
Throwing in the towel and all the trash BK chatter was just bash posting for cheaper shares. It never was the plan
Well it's never been this cheap a buy.
Sentiment: Strong Buy
Ya I know... lol.
I've never been one to hang around a board after I sold the stock and continuely trash it though. There's some serious hurt going on there.