LG. Philips Displays

As the market in mature economies declined in favor of LCD and plasma screens, LG. Philips Displays ("LPD"), the world's largest design and manufacturer of cathode ray tubes ("CRTs"), fell under increasing pressure due to the substantial and unexpected deterioration in the market. After accumulating a senior bank debt of $700 million, cash was expected to run out quickly as sponsors were no longer willing to support the company.

Alvarez & Marsal Asia was hired to serve as Financial Advisor to the company and to drive a restructuring process, including negotiations with Senior Lenders to gain support for their plan. A&M implemented vigorous cash flow control and substantial cost cutting measures, as well as changes to operational and management structure and processes. With A&M's assistance, the company was also able to close or sell loss making entities and establish a new group structure while maintaining 85 percent of its production capacity. A&M formulated a long-term business plan and identified opportunities to further improve cash flow available to secured creditors including various asset sales. Equity ownership of LPD is expected to be transferred to debt holders. A&M transitioned the case to the new owners' advisor. The sunset market for CRTs continues to suffer significant pressure and the restructuring effort is ongoing.