Financial restructuring

Nuclear Fuels Limited (BNFL) the board concluded on September 5, 2002 that the company needed emergency financial support to keep operating. The government then provided a loan of 450 million and became the senior creditor in a financial restructuring of the company, leading to a debt for equity swap. The new company was listed on the London Stock Exchange in January 2005. 

Financial restructuring required under bankruptcy protection... 

In these restructured electric markets, prices will be determined more by market forces and less by regulatory proceedings. To some, introducing competition will promote more efficient markets, providing the proper financial incentives for firms to enter or leave the industiy. In this way, consumers will benefit from lower production costs and, hcncc, reduced electricity prices. To others, restructuring will increase electricity prices for some customers, sacrifice the current environmental and social benefits, and jeopardize system reliability of the status quo. 

The current accessible information from this company do not show any records on BDS activities, the most recent recorded event correspond to 2000 activities. On November 14, 2001, their report announced a restructuring process of the Company s Scientific Advisory Board, replacing members with scientists and physicians with experience in cancer, production of therapeutic proteins, preclinical development and clinical trials. That indication for a new orientation and focus to the health sector did not last enough, and soon after, the company disappeared from the SEC (and any other financial) listing. 

Scope Scientific discoveries New molecules Upscale from laboratory to production Emergence of polymers Substitution Internationalization Broadening of product range Global competition Restructuring Price-cost squeeze Focus on financial returns Ongoing price-cost squeeze... 

The financial crisis in the Far East during the late 1990s exposed the high debt levels of the petrochemical operations, which were not being serviced. This has forced restructuring of the industry in order to reduce debt levels. For instance some companies had debt/equity ratios of well over 300%. Since restructuring, these levels have been reduced. 

Finally, the significant valuation differences between companies are likely to make some of them attractive acquisition candidates for the more successful and financially strong players in the industry. Some companies may even, on occasion, appear quite cheap. Also, private equity firms have entered the industry in force and are hkely to increase their presence, providing an enabler and catalyst for portfolio restructuring. They have access to plenty of cash (often more than the industry players themselves) and are run by very strong teams, with excellent skills in managing and improving multi-business portfohos (see Chapter 8). 

The company financial performance reflected a lower pretax margin as well as lower returns on assets and equity (see Table 7.11). Sales were down from 1997 by about 500 million, resulting in lower operating income as shown in Table 7.12 The median returns (Table 7.23) for 21 forest products companies are low compared with other companies in the CPI (Table 7.24). International Paper s returns are low compared with other forest product companies. International Paper in years past has had a more profitable record, but the restructuring expenses and lower sales in 1998 reflect lower financial performance. Projected price increases for paper, corrugated paper, and printing papers should help sales increase, however. 

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