Boyden Predicts Interim Management Demand to Maintain Momentum in Second Half of 2010

June 30, 2010 By Leave a Comment

Top global executive search firm finds organisations still want solutions
without permanent commitment; public sector and financial services remain most
likely to hire interim professionals -
LONDON–(Business Wire)–
Demand for UK interim managers in the second half of 2010 will remain strong as
companies seek operational turnarounds and growth solutions, without committing
to permanent hires, according to an announcement released today by Boyden global
executive search and Boyden interim management.

“We expect the demand for interim executives will remain robust for the rest of
the year, though the high utilisation of public sector interims may reduce with
the change of government and recent public sector spending cuts,” said Patrique
Habboo, Managing Partner at Boyden UK interim management. “We expect hiring of
interim talent in the public sector, financial services, manufacturing and other
sectors to play an integral role as clients ensure their management teams remain
fleet of foot and flexible during a time of economic transition.”

“Business cycles have shortened so much that permanent recruitment at the most
senior levels often cannot cope with the speed of change,” added Mr. Habboo. “As
companies react to global macroeconomic shifts, there`s a tremendous advantage
for organisations to turn to `over qualified` experts to help transform their
business, bring fresh perspective and extra executive horsepower. Companies are
still cautious about the economic recovery and hiring permanent executives.”

In the UK, the Public Sector retained the highest level of interim managers at
21 percent, while Financial Services was second at nine percent and Industrial
sector at seven percent, according to the Boyden interim management survey
released earlier this year. General Management (16 percent), Finance (15
percent) and Human Resources (13 percent) functions were the leading titles of
Interims on assignment in the Boyden survey of over 700 interim managers in
nearly 100 organisations.

The Boyden interim management survey queried managers on the leadership
qualities most often needed to reorganize and grow businesses. Most often
interim professionals believed that organisations have too often been working at
a strategic level to address changing economic circumstances rather than
focusing on better procurement, lean production, enhanced marketing/business
development or improved communication with customers. More than half of the
interim managers surveyed explained companies` response has been defensive
rather than strategic and often unnecessarily puts business initiatives on hold,
rather than investing for the upturn.

In the second half of 2010, the Public Sector is expected to continue to retain
a high proportion of interims, though government budget cuts could have some
effect on future hiring through 2010. However, new UK government decision makers
may weigh the benefit of interims` ability to “get on with the job” and produce
results and save costs without getting bogged down in internal politics,
according to Mr. Habboo.

Interim management is classified as the supply of executive level resource for a
clearly defined period of time, with an average tenure of six months. For a copy
of Boyden`s interim management survey please visit www.boydeninterim.co.uk.

About Boyden World Corporation

Boyden is a global leader in the executive search industry with more than 70
offices in over 40 countries. Founded in 1946, Boyden specializes in high level
executive search, Interim Management and Human Capital consulting across a broad
spectrum of industries. For further information, visit the firm`s website at
www.boyden.com.

Boyden World Corporation
John Ellis
t. + 44 207 389-9771
john@boyden.uk.com
or
Dan Margolis for Boyden
t. +1 213 452-6472
dan.margolis@fd.com

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Top global executive search firm finds organisations still want solutions

June 30, 2010 By Leave a Comment

June 29 (Reuters) – China will move 345,000 people, mostly poor villagers, within about two years to make way for a vast scheme to draw on rivers in the south to supply the increasingly dry north, an official newspaper said on Tuesday.

The forced resettlement for the South-to-North Water Transfer Project will be the biggest China has undertaken since building the Three Gorges Dam, the world’s biggest hydroelectric scheme, said the People’s Daily.

The project involves an eastern route to take water from the lower reaches of the Yangtze River and a central route to tap rivers flowing into the Danjiangkou Dam in central China.

The scheme has been troubled by delays, cost increases, pollution and the burden of resettling displaced farmers.

Zhang Jiyao, the official in charge of the project, said the mass move for the central route could be more demanding than the Three Gorges Dam move, which sparked years of contention with displaced residents unhappy with compensation and conditions.

“The intensity of the resettlement will surpass that of the Three Gorges Dam Project, because that involved a million migrants over about 10 years, and the resettlement for the South-to-North Water Transfer Project must be completed in over two years,” the paper quoted Zhang as saying.

Big dams and hydro projects have featured among China’s engineering trophies symbolising its growing wealth, but are also a lightning rod for persistent discontent.

The South-North Project is the latest among such efforts and the drive to finish resettlement for the rising Danjiangkou Dam by 2013 has already stirred complaints from farmers, who say they are being moved to poorer land with dim job prospects.

The dam is being raised to store more water, which will then be drawn along 1,421 km (883 miles) of canals and tunnels to Beijing, the nearby port city of Tianjin and surrounding areas.

North China has about half the country’s population but 19 percent of its fresh water resources. Industrial and urban growth have strained the nation’s rivers and underground reserves, according to official estimates.

The planned completion for the first stage of the central route was pushed back to 2014 after it became clear that earlier deadlines of 2010 and 2008 could not be met.

Many of the displaced farmers are residents of Xichuan county in Henan province, which lies on one side of the Danjiangkou Dam. They will be resettled in crowded Henan, the country’s most populous province with nearly 100 million people.

(Reporting by Chris Buckley; Editing by Paul Tait)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

Boyden Predicts Interim Management Demand to Maintain Momentum in Second Half of 2010

June 30, 2010 By Leave a Comment

Top global executive search firm finds organisations still want solutions
without permanent commitment; public sector and financial services remain most
likely to hire interim professionals -
LONDON–(Business Wire)–
Demand for UK interim managers in the second half of 2010 will remain strong as
companies seek operational turnarounds and growth solutions, without committing
to permanent hires, according to an announcement released today by Boyden global
executive search and Boyden interim management.

“We expect the demand for interim executives will remain robust for the rest of
the year, though the high utilisation of public sector interims may reduce with
the change of government and recent public sector spending cuts,” said Patrique
Habboo, Managing Partner at Boyden UK interim management. “We expect hiring of
interim talent in the public sector, financial services, manufacturing and other
sectors to play an integral role as clients ensure their management teams remain
fleet of foot and flexible during a time of economic transition.”

“Business cycles have shortened so much that permanent recruitment at the most
senior levels often cannot cope with the speed of change,” added Mr. Habboo. “As
companies react to global macroeconomic shifts, there`s a tremendous advantage
for organisations to turn to `over qualified` experts to help transform their
business, bring fresh perspective and extra executive horsepower. Companies are
still cautious about the economic recovery and hiring permanent executives.”

In the UK, the Public Sector retained the highest level of interim managers at
21 percent, while Financial Services was second at nine percent and Industrial
sector at seven percent, according to the Boyden interim management survey
released earlier this year. General Management (16 percent), Finance (15
percent) and Human Resources (13 percent) functions were the leading titles of
Interims on assignment in the Boyden survey of over 700 interim managers in
nearly 100 organisations.

The Boyden interim management survey queried managers on the leadership
qualities most often needed to reorganize and grow businesses. Most often
interim professionals believed that organisations have too often been working at
a strategic level to address changing economic circumstances rather than
focusing on better procurement, lean production, enhanced marketing/business
development or improved communication with customers. More than half of the
interim managers surveyed explained companies` response has been defensive
rather than strategic and often unnecessarily puts business initiatives on hold,
rather than investing for the upturn.

In the second half of 2010, the Public Sector is expected to continue to retain
a high proportion of interims, though government budget cuts could have some
effect on future hiring through 2010. However, new UK government decision makers
may weigh the benefit of interims` ability to “get on with the job” and produce
results and save costs without getting bogged down in internal politics,
according to Mr. Habboo.

Interim management is classified as the supply of executive level resource for a
clearly defined period of time, with an average tenure of six months. For a copy
of Boyden`s interim management survey please visit www.boydeninterim.co.uk.

About Boyden World Corporation

Boyden is a global leader in the executive search industry with more than 70
offices in over 40 countries. Founded in 1946, Boyden specializes in high level
executive search, Interim Management and Human Capital consulting across a broad
spectrum of industries. For further information, visit the firm`s website at
www.boyden.com.

Boyden World Corporation
John Ellis
t. + 44 207 389-9771
john@boyden.uk.com
or
Dan Margolis for Boyden
t. +1 213 452-6472
dan.margolis@fd.com

Copyright Business Wire 2010

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

General Growth files largest U.S. real estate bankruptcy

April 18, 2009 By Leave a Comment

NEW YORK (Reuters) – General Growth Properties Inc, the second-largest U.S. mall owner, declared bankruptcy on Thursday in the biggest real estate failure in U.S. history.

Ending months of speculation, General Growth, along with 158 of its 200-plus U.S. malls, filed Chapter 11 while it tries to refinance its debts.

But the ongoing global financial crisis made it impossible for General Growth to restructure outside of bankruptcy and could signal further troubles for other financial institutions who are General Growth creditors.

The collapse underscores the pressure on U.S. commercial real estate with few sources of available funding.

The company received approval on Thursday from federal bankruptcy Judge Allan Gropper to use its cash collateral to operate its businesses during bankruptcy.

Chicago-based General Growth, which owns such valuable properties as South Street Seaport in New York, Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston, listed total assets of $29.56 billion and total debts of $27.29 billion.

The collapse marks a sad chapter for a company that has been growing since 1954, when brothers Martin and Matthew Bucksbaum decided to expand their family’s grocery business and build a shopping center in Cedar Rapids, Iowa.

The company expanded steadily through both building and buying malls, the largest acquisition being the 2004 purchase of high-end mall owner Rouse Cos for $14.2 billion. That deal, financed entirely with debt, added 37 valuable U.S. malls to its portfolio, but also added enormously to its debt load.

“There are quite a few companies out there on the buyside who can now buy properties at a deep discount,” said Anthony LoPinto, chief executive of real estate executive search firm Equinox Partners. “A lot of fortunes are going to be made out of the Bucksbaums’ misfortune.”

Since November, General Growth had been warning it might seek protection from its creditors due to its failure to refinance maturing mortgages. Earlier this month, the company had tried to restructure Rouse bonds, but failed to get the necessary support.

“When we did not achieve the necessary amount of agreement on the bond solicitation, at that point we recognized that it was conceivable that we would not get the time outside of bankruptcy that we had hoped for to work on a restructuring,” General Growth President Thomas Nolan told Reuters.

The company’s collapse is not expected to be an isolated event. About $814 billion of commercial mortgage debt is expected to mature over the next two years, according to real estate research firm Foresight Analytics.

“We will see a significant rise in delinquent and defaulted mortgages in commercial real estate above and beyond what we already experienced,” said Sam Chandan, president and chief economist at Real Estate Economics.

The Wall Street Journal reported on Thursday that the Federal Reserve was considering offering longer loans to investors in commercial mortgage-backed securities to help jump-start the market for commercial real estate debt.

SEARCHING FOR ANSWERS

General Growth said in a statement that it would keep exploring strategic alternatives during bankruptcy protection, from which it is seeking to emerge as quickly as possible through a reorganization that preserves its national business.

Its filing in the U.S. Bankruptcy Court in Manhattan makes it one of the largest nonfinancial companies to succumb to the global financial crisis and is the biggest bankruptcy of a U.S. real estate company, according to BankruptcyData.com.

General Growth had previously put several of its flagship properties, including all three of its Las Vegas malls, up for sale.

Analysts and other real estate experts have speculated that mall owners Simon Property Group Inc — the largest U.S. mall owner — and Australia’s Westfield Group would be interested in buying some of General Growth’s assets from bankruptcy.

“Their stock of malls in the U.S. is pretty good — they are decent quality retail real estate. And I imagine the market reaction if there are any sales of their assets will be positive,” said Bruce Nutman, UK head of retail capital markets at CB Richard Ellis.

General Growth said its properties would be open for business and operating as usual.

“Our core business remains sound and is performing well with stable cash flows,” General Growth Chief Executive Adam Metz said in a statement. “While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11.”

The company’s fortunes have not been helped by the slowdown in U.S. consumer spending. While retailers should not see an immediate negative impact from the filing, there could be long-term concerns about leases and property maintenance, sources told Reuters.

ACKMAN AND THE DIP

General Growth has received a debtor-in-possession financing commitment of about $375 million from Pershing Square Capital Management LP as agent.

Pershing Square, the hedge fund run by William Ackman, owns about 25 percent of General Growth shares and had been urging the company to file for bankruptcy.

Activist investor Ackman is joining General Growth’s board — an unusual step. DIP lenders typically do not get involved with managing a company during restructuring.

“We’re going to be very actively working with the company to reorganize it,” Ackman said in an interview with Reuters.

“This company is doing fine. Its problem is that it can’t get mortgages, but nobody can get a mortgage now,” he added.

At the end of 2008, about $15.17 billion of General Growth’s debt consisted of mortgage loans that had been securitized into commercial mortgage-backed securities, according to research firm Trepp.

“This underscores that real estate companies are most vulnerable to refinancing risk rather than market risk,” said Nomura’s London-based property analyst Mike Prew.

General Growth shares were halted and eventually suspended by the New York Stock Exchange on Thursday. In premarket trade, they had fallen some 43 percent to 60 cents. The shares hit a 52-week high of $44.23 in May 2008 and a lifetime high of more than $67 in early 2007.

While General Growth bonds were not trading, Rouse’s 5.375 percent notes due 2013 rose to 37.5 cents on dollar versus 29.25 cents on Wednesday, according to MarketAxess.

General Growth’s refinancing troubles led to the firing of former CFO Bernard Freibaum in October. John Bucksbaum, who succeeded his father Matthew in 1999, stepped down as CEO the same month, but he remained chairman.

The company has hired law firms Weil Gotshal and Manges and Kirkland and Ellis to represent it, according to court papers. Pershing Square has hired law firm Jones Day and lead attorney Robert Profusek to represent it.

The case is In re: General Growth Properties Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-11977.

(Reporting by Ilaina Jonas and Emily Chasan; additional reporting by Sinead Cruise, Dan Wilchins, Al Yoon, Martinne Geller, Ajay Kamalakaran and Nick Carey; editing by Patrick Fitzgibbons and Tim Dobbyn)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,