by Ron Carleton | Jul 22, 2009
In How the Mighty Fall and Why Some Companies Never Give In, Jim Collins lists five stages of corporate decline. We used them to analyze Xerox in our last post. Collins uses behavioral terms to describe how companies falter, not financial measures. We have a framework...
by Ron Carleton | Jul 6, 2009
How the Mighty Fall Jim Collins is among the best researchers and writers on management effectiveness working today. He’s turned his attention from how companies succeed to how they fail. In his new book How the Mighty Fall and Why Some Companies Never Give In,...
by Ron Carleton | Jun 24, 2009
According to Bloomberg.com, American Airlines is asking its lenders for a covenant waiver. A conference call was held on June 22 and responses are due by June 25. Why the rush? The covenant would be waived for the quarter ending June 30, so the company wants the...
by Ron Carleton | Jun 17, 2009
With the weak economy, we are seeing more companies breach covenants in their loan agreements. Such a default typically gives lenders these right: Acceleration (i.e. “call the loan”) – declare the principal of the loan to be immediately due and...
by Ron Carleton | Jun 10, 2009
Bio-Rad Laboratories Inc. is a life sciences company with sales of over $1.7 billion. In May of 2009, it issued $300 million of 7-year notes in a 144A offering through Credit Suisse. The company refers to the new debt as Senior Subordinated Notes. Does this mean the...
