10/05/2007 255 Application to Approve Appointment of Trustee, filed by U.S. Trustee. (Daugherty, John) (Entered: 10/05/2007)
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Doc 255
In re:
Pro Mold, Inc.
Debtor.
Case No. 07-50935
Chapter 11
APPLICATION TO APPROVE APPOINTMENT OF TRUSTEE
Richard F. Clippard, United States Trustee, by counsel, applies to this Court, pursuant to Rule 2007.1(c) of the Federal Rules of Bankruptcy Procedure, for an Order approving the appointment of Kenneth C. Henry as trustee. In support, the United States Trustee states:
1. This Court, after a hearing on the Motions of the United States Trustee and Pro Plas LLC for Appointment of a Trustee, ordered the United States Trustee to appoint a trustee in
this case.
2. The United States Trustee has consulted with counsel for the Debtor, the Unsecured Creditors Committee, and the “Murphy entities” regarding trustee candidates.
3. Based upon these consultations, and internal deliberations, the United States Trustee appointed Kenneth C. Henry as trustee. Mr. Henry’s curriculum vitae is attached as Exhibit 1.
4. To the best of the United States Trustee’s knowledge, Mr. Henry’s connections with the Debtor, creditors, any other parties-in-interest, their respective attorneys and accountants, the United States Trustee and persons employed in the Office of the United States Trustee, are limited to those set forth in the attached Declaration.
WHEREFORE, the United States Trustee respectfully requests that this Court enter an Order Approving the Appointment of Kenneth C. Henry as trustee.
Dated: October 5, 2007
Richard F. Clippard
United States Trustee, Region 8
By Counsel
/s/ John L. Daugherty
John L. Daugherty
Assistant United States Trustee
100 E. Vine St. Suite 500
Lexington KY 40513
(859) 233-2822
CERTIFICATE OF SERVICE
I hereby certify that on this 5th day of October, 2007, I served a copy of the foregoing Appointment (i) via ECF noticing or (ii)via first-class mail, postage prepaid to the attached list.
/s/ John L. Daugherty
John L. Daugherty
*Ellen Arvin Kennedybankruptcy@fmblaw.com; fmbbankruptcy@gmail.com
*Eric N. Assouline ena@assoulineberlow.com
*John P. Brice lexbankruptcy@wyattfirm.com
*E. Rebecca Case erc@stoneleyton.com
*Dean A. Langdon langdonbk@wisedel.com; plickert@wisedel.com; lconner@wisdel.com;
jspicer@wisedel.com
*Robert J. Brown lexbankruptcy@wyattfirm.com
*Leslie Dean ldean@lesliedean.com
*Gregory Schaaf lexbankruptcy@gdm.com; shm@gdm.com; awc2@gdm.com
*Howard Smotkin hss@stoneleyton.com
*Janice Valdez jrv@stoneleyton.com
*Ellen Vergos evergos@wyattfirm.com
AIG
22427 Network Place
Chicago, IL 60673-1224
All Points Capital
275 Broadhollow Rd
Melville, NY 11747
IRS
PO Box 21126
Philadelphia PA 19114
Amco International, Inc.
595 Broadhollow Rd
Farmingdale, NY 11735
Ashland Distribution Co.
PO Box 93263
Chicago IL 60673-3263
Exxene Corp
PO Box 8997
Corpus Christi, TX 78468-8997
Entec Polymers, LLC
PO Box 934329
Atlanta GA 31193-4329
DHL Global Forwarding
14076 Collections Center Dr
Chicago IL 60693
James P. Toohey
17141 Hidden Point Dr
Chagrin Falls, OH 44023
Ameren UE2
PO Box 66301
Saint Louis MO 63166-6301
Westech Tool & Machine Inc
2034 Trade Center Dr East
Saint Peters, MO 63376
John Henry Foster Co.
PO Box 5820
St. Louis MO 63134-0820
M. Holland Company
PO Box 92170
Elk Grove Village, IL 60009
Nextemps, Inc.
7390 St. Charles Rock Rd
St. Louis, MO 63133
Mendoza Berger & Co. LLP
9838 Research Dr
Irvine CA 92618
Remedy
PO Box 60515
Los Angeles CA 90060-0515
Sandy Dodd
PO Box 4172
Hazelwood MO 63042
Network Polymers
1353 Exeter Rd.
Akron OH 44306
Plasticon
3288 Eagle View Ln Ste 290
Lexington KY 40509
Polyone Corp
Dept CH 10489
Palatine IL 60055-0489
Regions Morgan Keegan Trust
One South Church St 4th Fl
Belleville IL 62222
Central American Packaging
5324 Aero Dr
St. Louis MO 63110
Security One Inc
PO Box 2121
Memphis TN 38159
Exhibit 1
RTL ADVISORY GROUP, INC . KENNETH C. HENRY, CMC, CTP, MBA
PRESIDENT AND CEO
khenry@rtladvisorygroup.com
Kenneth Henry provides more than 25 years of knowledge and experience managing and consulting to under-performing organizations, debtors-inpossession, secured and unsecured creditor committees, and turnaround and crisis management situations . His span of industry expertise is extensive and includes : manufacturing, publishing, software development, retail, wholesale, distribution, food processing, shipbuilding, trucking, aircraft maintenance and repair, entertainment, fast food restaurants and energy.
Prior to establishing RTL Advisory Group, Inc ., Ken was a senior director in the Corporate Advisory & Restructuring Group of Kroll Zolfo Cooper's Western Region . Before joining Kroll, Ken was partner and business line leader in the Financial Recovery Services Group at BDO Seidman LLP.
Previous to that, he was managing director in the Business Recovery Services group at PricewaterhouseCoopers, LLP and held a similar position at Coopers & Lybrand, LLP prior to the merger of the two firms.
Ken has an extensive and successful track record in crisis management and turnaround engagements, Chapter 11 bankruptcy representation of both debtors and creditors, workouts and business restructurings out of bankruptcy.
In addition, he has served as State Court Receiver, a chapter 11 trustee, and a court appointed examiner in numerous complex bankruptcy cases . He was appointed Trustee by the United States District Court for the Central District of California in the First Alliance Mortgage case . In April; 2006, Ken was appointed as the Chapter 11 Trustee for Brooks Sand and Gravel, LLC, and Financial Advisor to the Chapter 11 Trustee for Smith Mining and Materials, LLC.
Having filled interim positions as chief executive officer, chief operating officer and chief restructuring officer for multi-million dollar companies in varied industries, Ken understands the financial, operational, organizational and legal elements required for a successful turnaround or reorganization. In addition, Ken served as director of finance for Van Camp Seafood Co ., Division of Ralston Purina for six years . Ken managed the financial operations of their worldwide canner of Chicken of The Sea Tuna in Manta, Ecuador; Ponce, Puerto Rico and Pago Pago, American Samoa as well as the
U.S. operations .
His master's thesis was a macro-economic study of the U.S. Fisheries. Ken has lectured frequently on topics related to transition and crisis management, workouts and turnarounds, profit maximization, and reengineering, and is the author of a series of articles on corporate reorganizations, turnarounds, workouts, restructuring and crisis management.
EXPERIENCE
TECHNICAL AND SPECIAL EXPERTISE
KENNETH C . HENRY, CMC, CTP, MBA
SELECTED CONSULTING & EXECUTIVE MANAGEMENT ENGAGEMENTS MANUFACTURING
v Engaged as interim chief operating officer and chief financial officer of a $30 million high-tech manufacturer of state-of-the-art hearing aids . Downsized and reorganized the manufacturing operation, created budgetary and financial reporting discipline, negotiated distributor contracts and
converted negative monthly EBITDA to positive (within 6 months).
v Engaged as interim chief operating officer of a $35 million manufacturer and distributor of ultra-lite aircraft. Assessed operations of overall financial condition, recommended that the company file chapter 11 bankruptcy protection . Led the post petition negotiations with the Internal Revenue Service regarding unpaid 941 taxes and with trade and other unsecured creditors . Successfully concluded the sale of the company to a major competitor.
v Engaged as a consultant and financial advisor to develop a turnaround and restructuring strategy for a $75 million manufacturer of printed circuit boards. Negotiated workout plan with the company's secured lender
American Bankruptcy Institute, Southwest Chapter — Director
American Bankruptcy Institute, Battleground West — Director and Co- Program Chair
So. California Turnaround Management Association — Past President, Director National Chapter, Turnaround Management Association — Past Director
Institute of Management Consultants (CMC) (formerly National Bureau of Certified Consultants) — Executive Committee
California, Los Angeles and San Diego Bankruptcy Forums Member,
Moderator & Panelist
National Association of Bankruptcy Trustees — Member
Consultants Roundtable — Executive Committee
Association of Turnaround Professionals (CTP)
TriState Association for Corporate Renewal
Masters degree in Business Administration (MBA), Pepperdine University, Malibu, CA
Bachelors degree in Economics and Finance from Western Kentucky
University Completion of Post-graduate Certificate — Executive Management Program at the European Graduate School of Business (INSEAD), Fountainbleau, France
Certified Management Consultant, Institute of Management Consultants
Certified Turnaround Professional, Turnaround Management Association
PROFESSIONAL AFFILIATIONS
EDUCATION AND CERTIFICATIONS
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KENNETH C . HENRY, CMC, CTP, MBA
v Engaged as a financial advisor for a $125 million manufacturer of multi-layered printed circuit boards to develop a cash management strategy and discipline, manage the overall financial function and establish credibility with the company's secured lender.
v Engaged as financial advisor to an $8 billion European aerospace company to purchase a California aerospace manufacturer out of bankruptcy.
v Financial advisor to the Official Committee of Unsecured Creditors in a chapter 11 bankruptcy case. Incorporated the Black-Scholes Valuation methodology, which aided in generating a 60% return to the Unsecured Creditors.
v Engaged as financial advisor to assess the operations of a $40 million manufacturer and distributor of premium golf clubs and equipment . Assessed the operations, financial structure, industry dynamics, competitive position and management team . Made recommendations for improving operations, reducing inventory and eliminating underperforming personnel.
SOFTWARE DEVELOPMENT
v Engaged as interim chief executive officer of a $50 million software development and distribution company selling primarily to the automotive industry . Successfully turned around this lackluster division of a $300 million subsidiary of an $8 billion international parent company . Increased revenues in excess of sixty percent in two years with less than a five percent increase in operating expenses . Generated a thirty percent pre-tax return and contributed sixty percent of subsidiaries' pretax income. Created a software development methodology that dramatically improved product quality and throughput.
v Recruited by the parent company as interim president and chief operating officer of a $30 million software development company that designed and distributed integrated computer systems for the automotive after-market industry. Substantially reduced annualized overhead, developed a 120-day
turnaround plan, eliminated unprofitable product lines, reorganized the company, established quality control discipline, and created a software development methodology.
v Engaged by the parent company of a $75 million software developer of virtual reality video games as crisis manager to downsize and stabilize the operation, develop a strategy to complete two major contracts within 6 months and negotiated the sale of the company.
DISTRIBUTION
v Engaged as interim president and chief operating officer of a $150 million international distributor of marine and industrial hardware. Reorganized the company, negotiated a workout plan with the secured lender, expanded the operation to the Western Pacific and broadened the customer base to
include government contracts.
v Completed Viability Assessment of a $40 million distributor of premium label ice cream and related dairy products. Provided ongoing advice and counsel to owners regarding implementation of recommendations outlined in assessment. Negotiated the eventual sale of the company to a major
competitor.
v Engaged as interim chief financial officer of a $25 million assembler and distributor of IBM clone personal computers . Developed "fundable" business plan to present to investment banks and negotiated circuit board manufacturing contract with Taiwanese manufacturer . Revamped the quality control process, eliminated operation redundancies and doubled throughput.
v Financial advisor to a chapter 11 debtor-in-possession and multi-million dollar distributor of health foods and supplements . Participated in the development of the Plan of Reorganization and Disclosure Statement that was confirmed by the bankruptcy court.
v Provided financial advisory services to a related, but separate, company to the above distributor of health foods and supplements.
RETAIL
v Interim ceo and responsible officer to a chapter 11, $500 million debtor-in-possession retailer and wholesaler of men, women and children's sport merchandise with over 350 retail stores throughout the U.S . Liquidated the retail business and sold the wholesale business, including the brand name and trademark, generating in excess of $100 million. Paid off secured debt and made available a meaningful distribution to the unsecured creditors.
v Interim ceo of a $100 million retailer of fine jewelry with stores throughout the U .S. Successfully concluded the financial restructuring and avoided a chapter 11 filing.
v Financial advisor to a chapter 11 debtor-in-possession, a $120 million, 30 store retailer/wholesaler of auto parts and accessories. Downsized the company, created management retention plan and negotiated eventual sale of company.
v Financial advisor to a chapter 11 debtor-in-possession and multi-million-dollar retailer of high-end leather goods, operating 23 stores in five states. Managed team of professionals that identified unprofitable operations, established financial and operational control procedures, managed the development of a financial model to support the plan of reorganization and assisted in negotiations with the exit financing lender.
v Financial advisor to the lender group to assess operations, analyze financial results, review new construction projects and provide detailed findings, results, conclusions and recommendations of the fifth largest movie exhibitor in the U .S.
v Financial advisor to the oldest, continuously operating department store in California to develop downsizing strategy for a 30-store chain of general retail merchandise. Reduced excess inventory, closed unprofitable locations, eliminated slow moving product lines, negotiated more favorable purchase contracts, and downsized the operation, which resulted in positive cash flow and profitability.
v Financial advisor to the chapter 11 debtor-in-possession to analyze operations, financial viability, marketing capabilities, internal systems and controls and management, and to assist in the development of a plan of reorganization.
v Performed financial and operational consulting, developed business plan, negotiated a private placement of subordinated debentures, recruited a chief financial officer and served on the board of directors of this $40 million retailer of active sportswear . Assisted in the expansion of operations from one store and $850,000 in annual revenue to 20 stores in three states and $43 million in revenue.
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KENNETH C. HENRY, CMC, CTP, MBA
TRUCKING, SHIPBUILDING AND REPAIR, AND AIRCRAFT MAINTENANCE AND REPAIR
v Brought in as president and chief executive officer of this multi-million dollar subsidiary of SwissAir. Due to SwissAir's bankruptcy filing in September 2001, the American subsidiary was unable to generate sufficient cash flow to operate and to receive any further financial assistance from the parent company . This resulted in a plan of liquidation being formulated and executed . The winddown and liquidation process took approximately eight months for a successful completion.
v Financial advisor to one of the largest long-haul trucking companies in the U .S. Assisted in preparing the company for an eventual chapter 11 filing . Prepared detailed liquidation analysis to include the marshalling of all rolling stock in the U .S. to four geographic locations on the day of filing. Prepared detailed budgets and financial models to be shared with the lender group and by which the company would manage the wind down.
v Engaged by new owner as chief financial officer to completely reorganize, downsize and eventually sell a $100 million builder of multi-million dollar fishing vessels and repairer of U .S. Navy vessels. Carried top-secret security clearance.
v Provided consulting services to a $30 million builder and repairer of custom yachts to develop cash forecasting capability, eliminate redundant and excess expenses, negotiate a workout plan with major lender and the Internal Revenue Service, State Board of Equalization and Economic Development
Department.
WHOLESALE
v Financial advisor to owner of a $100 million, highly complex, wholesale distributor of fresh fruit and vegetables . Developed a plan of liquidation for 32 retail subsidiaries, divisions and related partnerships . Avoided bankruptcy by assisting in negotiations with the unsecured creditors pool, pursuant to provisions of the Perishable Agriculture Commodities Act of 1930 ("PACA") that generated a 75% return to the creditors.
v Served as chapter 11 trustee of a $20 million auto dismantler and recycler of automotive parts.
PUBLISHING
v Retained as financial and operational consultant to a publisher of auto repair and service manuals. Negotiated with numerous venture capital companies for expansion capital. Advised in the eventual sale of the company to a major, Canadian publisher of newspapers and technical trade manuals.
v Interim chief executive officer of a major division of a $300 million publisher of automotive repair manuals.
CONTRACTING
v Financial advisor in the leverage buyout of an ESOP financed marine architectural and design firm. Developed a strategic plan for this $40 million firm and served on board of directors for eight years.
v Financial advisor to a $130 million construction contractor of major commercial properties throughout the United States.
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KENNETH C. HENRY, CMC, CTP, MBA
ENTERTAINMENT
v Financial advisor to the lender group and developed a workout plan for a multi-million dollar owner of mega screen movie theatres.
SELECTED BANKRUPTCY CASES: COMPANY
Service Merchandise
Bugle Boy Industries
California Power Exchange
Cimm's, Inc.
Auto Parts Club, Inc.
Lynx Golf, Inc.
Leathermode, Inc.
Super Nu-Life Products, Inc.
Goldenrise Development, Inc.
GKN Aerospace, Inc.
Latitudes, Inc.
San Diego Foreign
AgriBioTech, Inc.
NationsWay Trucking
First Alliance Mortgage Co.
Bake-Line Group
Pasminco Pacific Proprietary, Ltd.
Brooks Sand & Gravel
Smith Mining & Materials
REPRESENTED
Debtor
Debtor
Participants Committee
Debtor
Debtor
Unsecured Creditor
Debtor
Debtor
Debtor
Buyer
Debtor
Appointed as Trustee
Secured Lender
Debtor
Appointed as Liquidating Trustee
Secured Creditor
Debtor
Appointed as Trustee
Financial Advisory to Trustee |
