TMA / UCLA Team Case Presentation

This article summarizes a real-world case, Accuride Corporation, presented by a TMA team at the UCLA Anderson School of Management on October 26, 2010. It illustrates how a Chapter 11 filing can buy a company some time, but that fundamental changes in the organization must be made to avoid a return of insolvency, as the company’s high fixed costs and low margins, even in good years, were not seriously addressed by management, but could have been, as discussed in an Alternate Ending to this story.

How Close IS a Bankruptcy?

Don’t let a lack of understanding of just how devastating a bankruptcy can be to your company’s equity value and control prevent taking pre-emptive action to maintain control of the company’s fate – BEFORE the police are chaining the doors to the facility. Otherwise, the work of many years, even of a lifetime, and the equity value the company has built up can shrink to nothing in a startlingly short time period.