RE: RE: former bad management
I think if there were anything good to buy, someone would have done it back when they were still a going concern. They've been publicly after a buyer since a press release in Nov 2008, but the desire goes back even earlier because word on the street is that the whole idea behind all the acquisitions was to build something that could be sold for more than the sum of the parts.
After more than a year of seeking a buyer, you have to assume that all the major staffing agencies and other possible buyers have already run through their books. At this point, most are probably hoping that they can't make it back out of restructuring, in which case there is definitely no money to be had. What will emerge looks to be private, and there will probably be very little cash changing hands. Raj and the others backing the deal appear to be individuals and not corporations, so you have to wonder what cash they can pull together. What is likely being offered is a commitment to repay debt at some agreed-upon level over a set/realistic period of time. It was the major financing with lump-sum repayments (at mezzanine rates) that killed them. At this point the secured creditors likely would be happy to get anything back, so it doesn't hurt them to give a bit longer as long as the debt doesn't increase. The last thing they need is for BH to hand them the keys to the company and say "You run it." The longer it runs without any further debt accumulation, the better the chance that they get some of their money back. If they don't support a deal, then they would be lucky to get a few cents on their dollar. TD's condition for supporting them with debtor-in-possession financing is that they are the main financer for the re-emerged entity. It guarantees that they are first in line if they do need to push the default button.
As it stands, if someone needs to step up to >$28m for an offer, it is not viable unless they are doing so for the taxloss provisions. There are other staffing companies that are financially viable that could be bought for the same/comparable amount. Why buy something that is going to take 10-15 years to recoup the investment (if even that quickly) when you can buy something financially viable that will provide payback in less than 5 years.