Saturday, October 5, 2019

Soft Pedaling Deluxe Entertainment Bankruptcy

Forbes reported in 2005:

Through his main investment vehicle, MacAndrews & Forbes Holdings and its subsidiary DX III Holdings, Perelman has bought Deluxe Film, one of the world's largest replicators of film for the global movie industry, for some $745 million. 
Under MacAndrews and Forbes Deluxe's debt grew to almost $1.3 billion.  Moody's downgraded Deluxe's debt in August and estimated leverage to be around 12x.  

On October 3rd Deluxe entered Chapter 11 bankruptcy.  Deluxe's press release omitted the word bankruptcy altogether. 

All parties involved determined that the best way to implement the debt-for-equity exchange is through a controlled, efficient Court-supervised process, and today the Company took steps to start that process. "We have been working to put Deluxe in a strong financial position, and these steps are the best and most efficient way to finalize and implement the comprehensive financial restructuring,"
MacAndrews and Forbes did not include Deluxe's bankruptcy news on their website.

Frances Townsend is Executive Vice President, Worldwide Government, Legal and Business Affairs for MacAndrews and Forbes.  She omitted the hospital with the highest death toll after Hurricane Katrina.  Carlyle Group affiliate LifeCare Hospitals had 26 deaths after Katrina made landfall. 

Whitewashing remains alive and well and the PEU boys are particularly adept at it.