WSJ: PJ Solomon's New Restructuring Head Counsels Bankruptcy Avoidance

Date: 15-Nov-2010

It may come as a surprise that Durc Savini, the new head of the restructuring and recapitalization 
group at investment bank Peter J. Solomon Co., sees part of his job as helping companies avoid
bankruptcy.

But Savini, who came over from Miller Buckfire, puts that view in the context of broader shifts in
the bankruptcy and restructuring business. “It’s really changed over the last 10 years,” he said,
with companies typically striving to avoid bankruptcy and any restructuring being completed more
quickly.

“Companies and boards of directors want to avoid bankruptcy at all costs,” he said, and they don’t
have the patience for costly, drawn-out restructuring transactions. “Bankruptcy is
value-destructive.”

Peter J. Solomon has designed its approach to working with companies accordingly, assigning
industry experts to work alongside restructuring bankers so a company has a range of options, such
as raising capital or finding an acquirer, as well as the less-favorable option of a bankruptcy
filing.

The bank, for example, tag teamed in this way when working with Zale Corp. The Irving, Texas-based
jewelry chain obtained a $150 million term loan in May from private-equity firm Golden Gate Capital
after a prolonged struggle with weak sales.

Savini agrees that with debt defaults way down and buoyant capital markets providing ready finance,
restructuring work isn’t a big opportunity “across the board.” But he sees opportunities in
particular industries such as retail, one of Peter J. Solomon’s strong suits. He points out that
the bank has developed its expertise in media and telecommunications, “another industry that’s
going to be productive.”

In his new role, Savini replaces Bradley Dietz, who has left the firm.


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