Rubin Moves Up the Ranks At Chanin Capital Partners

Mark Rubin, a restructuring expert, was recently promoted to managing director at Los Angeles-based Chanin Capital Partners. Sharing his thoughts on working with distressed companies as the economy starts to pick up steam he says, “We won’t see the same volume and levels of activity, but as the economy improves, it will make it easier for some restructuring companies to access capital.” He adds that there are numerous mid-market companies that never fixed their capital structure and must make changes in this area now. A strong driver for restructuring assignments, Rubin says, is the stockpile of investor money that was on the sidelines during the economic downturn and is now needs to be put to work. One change he expects to see going forward is that deals will be company-specific rather than industrywide washouts, such as occurred in the telecom sector. Rubin joined Chanin in 1998 and has worked on a broad range of restructuring deals with such companies as Sunterra Resorts, Atlantic Express Transportation, Harry Winston Jewelers, and Borden Chemicals & Plastics. Current assignments include work with Mississippi Chemical and Raintree Resorts International. Prior to joining the company, he spent nine years in the restructuring group at PricewaterhouseCoopers. He’s a graduate of the State University of New York and Duke University Business School. In his work with Mississippi Chemical, Rubin was able to help the company avoid what can be one of the biggest strategic missteps in a restructuring – the sale of the company’s best asset. On May 15, 2003, Mississippi Chemical, together with its domestic subsidiaries, filed for Chapter 11 bankruptcy protection. As the lead adviser for the company’s official unsecured creditors committee, Rubin was able to arrange for $160 million of financing for debtors. In doing so, he found a way for the company to retain its 50% stake in its ammonia production joint venture in the Republic of Trinidad and Tobago, Point Lisas Nitrogen. Ammonia is a feedstock for Mississippi Chemical’s primary products – nitrogen, phosphorus, and potassium, which are used as crop nutrients and in industrial applications. “We were able to persuade the bankruptcy judge that there was a better solution that involved our finding alternative investors that could pay off the banks without damaging the company’s prospects,” Rubin states. He says that the improving economy and investors’ belief that the chemicals industry was poised to rebound made the alternate loan proposal feasible. He notes that the survival of a number of heavy manufacturing industries in the U.S. can be iffy,” but there are opportunities for restructuring in the sector. “In heavy manufacturing industries like chemicals and steel, domestic companies have to be able to compete with suppliers all over the globe.” Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.majournal.com