Business Development Asia LLC (\u201cBDA\u201d) was mandated jointly with Close Brothers Plc, to advise Kroll, the UK administrator of Turner & Newall (T&N).\u00a0\u00a0Federal-Mogul, a leading global automotive component supplier, went into Chapter 11 bankruptcy protection in 2001 due to asbestos liabilities. \u00a0Kroll was appointed as administrator to Turner & Newall, which held most of Federal-Mogul\u2019s non-US assets.\u00a0 Kroll retained BDA and Close Brothers to establish the fair value of the assets under the control of the UK administrators, and\u00a0then to advise on negotiations with the US restructuring proponents, which included Carl Icahn, the leading unsecured US creditor of Federal-Mogul.<\/p>\n
The US restructuring proponents initially proposed a restructuring plan that would roll the global assets of the company into a new company, to be owned by its creditors. \u00a0 To take ownership of the UK business, the US proponents offered a \u00a373m cash dividend to the UK creditors.<\/p>\n
The UK administrators began a controlled realization process to optimize both the strategic and financial value of the businesses.<\/p>\n
BDA\u00a0valued and advised on the divestiture of the Asian operations.\u00a0 These\u00a0comprised 10 manufacturing locations in five countries (Japan, Korea, China, Thailand, India, Turkey) covering four different business divisions of Federal Mogul.<\/p>\n
Within this high pressure, time critical environment, BDA\u2019s advice\u00a0was used to support court filings and statements in the US and UK courts.\u00a0 BDA was instrumental in\u00a0bringing the Chapter 11 parties\u00a0to agreement on a revised Chapter 11 emergence plan, which the Administrators and UK creditors\u00a0jointly accepted.\u00a0 The US restructuring proponents agreed to take ownership of the UK business in return for UK creditors receiving a cash dividend of \u00a3375m.<\/p>\n
Federal Mogul\u00a0was acknowledged to be the most complex international insolvency\u00a0yet undertaken in the United Kingdom.<\/p>\n
The BDA transaction team was led by Andrew Huntley, Managing Director +44 20 7655 3500.<\/p>\n