business restructuring plan ppt project

The RSA provides a better roadmap for QualTek to emerge swiftly from Chapter 11 with a strong balance sheet and positioned to invest in growth. Under the terms of the RSA, the Company contemplates a $65 million debtor-in-possession term loan financing facility (“DIP Facility”), which will include a new money funding of $40 million. Upon approval by the Court, the DIP Facility will provide the Company with the stability and liquidity needed to continue operations in the ordinary course of business and pay vendors during the reorganization. Management continues to lead the business, roles and responsibilities across the team remain the same, and operations across the Company are expected to continue as usual.

Additional Information about the Financial Restructuring QualTek is filing customary “First Day Motions” with the Court to facilitate a smooth transition into Chapter 11. These motions, which the Company expects to be approved in short order, include requests to pay wages and benefits, pay trade vendors, and ensure the continuation of business operations without interruption. The Company will continue servicing its existing customers, vendors, partners, and other stakeholders in the ordinary course of business.

Additional information about the Company’s financial restructuring is available on the website of its claims agent, Epiq, at https://dm.epiq11.com/QualTek . With questions, stakeholders can contact Epiq at (877) 609-4009 Toll Free or +1 (503) 447-4703 from outside the U.S. or Canada, or by emailing [email protected] .

Advisors Kirkland & Ellis LLP and Jackson Walker LLP are serving as legal counsel, Jefferies is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. The Company has retained C Street Advisory Group to serve as the strategy and communications advisor.

About QualTek Founded in 2012, QualTek is a leading technology-driven provider of infrastructure services to the 5G wireless, telecom, power grid modernization and renewable energy sectors across North America. QualTek has a national footprint with more than 65 operation centers across the U.S. and a workforce of over 5,000 people. QualTek has established a nationwide operating network to enable quick responses to customer demands as well as proprietary technology infrastructure for advanced reporting and invoicing. The Company reports within two operating segments: Telecommunications, and Renewables and Recovery and has already become a leader in providing disaster recovery logistics and services for electric utilities. For more information, please visit https://www.qualtekservices.com .

Forward Looking Statements This press release contains forward‑looking statements for the purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements about the Company’s ability to successfully consummate the Restructuring and emerge from cases commenced under chapter 11 of the Bankruptcy Code, the potential adverse effects of the Chapter 11 Cases on our liquidity, and results of operations and the Company’s ability to obtain confirmation of the Plan under the Chapter 11 Cases. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would,” and other similar words and expressions (or the negative versions of such words and expressions), but the absence of these words does not mean that a statement is not forward-looking.

These forward looking statements are subject to risks, uncertainties and other factors, many of which are outside of QualTek's control, that could cause actual results or outcomes to differ materially from the results or outcomes discussed in the forward looking statements, including, without limitation, statements regarding: the ability of QualTek to reach an agreement with its lenders and noteholders on a recapitalization plan for QualTek or the ability of QualTek to enter into a restructuring support agreement with its lenders and noteholders; the effects of any agreement or restructuring support agreement between QualTek and its lenders and noteholders, including QualTek’s ability to reduce its debt, strengthen its balance sheet and facilitate an infusion of new capital; the effect of the bankruptcy process under chapter 11 of the United States Bankruptcy Code (the “Chapter 11 process”) on the implementation of any restructuring transactions pursuant to a restructuring support agreement (the “Restructuring Transactions”) and the interests of various constituents, including the holders of our ordinary shares; the length of time and the ability to complete a financial restructuring (the “Restructuring”), including a restructuring of our existing debt, existing equity interests, and certain other obligations; QualTek’s ability to continue as a going concern; the ability of QualTek to continue to operate in the ordinary course of business while the Restructuring and Chapter 11 process are pending and without disruptions to relationships with suppliers, customers, employees and other third parties and regulatory authorities; potential adverse effects of the Restructuring and Chapter 11 process on QualTek’s liquidity, results of operations or business prospectus; the availability of sufficient liquidity or operating capital during the pendency of the Chapter 11 process; QualTek’s expected position and ability to improve long-term capital structure and address its debt service obligations following the completion of the Restructuring and Chapter 11 process; QualTek’s ability to maintain the listing of its ordinary shares on the NASDAQ or another stock exchange during or following the Chapter 11 process; QualTek’s ability to obtain timely approval by the bankruptcy court with respect to the motions filed in connection with the Chapter 11 process; the risks associated with third party motions during the Chapter 11 process and objections to QualTek’s Restructuring or other pleadings filed that could protract the Chapter 11 process or prevent the consummation of the Restructuring Transactions or an alternative Restructuring; the volatility in the price of our ordinary shares, including as a result of the Restructuring Transactions or the Chapter 11 process; increased administrative and legal costs related to the Restructuring Transactions and the Chapter 11 process; litigation and inherent risks involved in a Restructuring or bankruptcy process our potential need to continue to engage with shareholders and debtholders with respect to our capital structure and the Restructuring Transactions; our potential need to seek additional strategic alternatives, including by raising additional equity capital or debt, by reducing or delaying our business activities, by initiating reductions in force, by selling assets, by Restructuring, refinancing, purchasing, repaying or otherwise retiring our outstanding debt; our ability to remain compliant with all covenants in our existing and new debt; employee attrition and QualTek’s ability to retain senior management and other key personnel due to the distractions and uncertainties in connection with the Restructuring Transactions; QualTek’s ability to comply with the restrictions imposed by the terms and conditions of any new money financing arrangements; the volatile global economic conditions and a downturn in the worldwide economy due to inflation, geopolitics, changes in raw material and energy prices; interruptions in raw materials and energy supply; economic and other impacts from the military conflict in Ukraine and the economic sanctions imposed due to the conflict; the impacts of global health crises and the measures put in place by governments in response; our ability to maintain sufficient working capital; the costs associated with site closures; the execution, impact or timing of our cost reduction programs and initiatives and risks related to local law requirements in various jurisdictions; industry production capacity and operating rates; the supply demand balance for our products and that of competing products; pricing pressures; technological developments; legal claims by or against us; changes in government regulations; the impacts of increasing climate change regulations; geopolitical events; cyberattacks; and public health crises.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, QualTek does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for QualTek to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements and uncertainties described from time to time in the documents that QualTek files with the SEC, including QualTek 's Annual Report on Form 10-K for the year ended December 31, 2022. The risk factors and other factors noted therein could cause results, outcomes, expectations, and projections to differ materially from those contained in any forward-looking statement.

Media & Investor Relations C Street Advisory Group [email protected]

Rubbermaid parent Newell Brands stock falls 3% after company unveils restructuring plan

Claudia assis.

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Shares of Newell Brands Inc. NWL, +3.19% dropped more than 3% in the extended session Friday after the consumer products company behind brands such as Rubbermaid and Elmer glue said it was embarking on a restructuring and savings plan intended to “streamline” its North American distribution network. The goal is to improve the company’s cost structure, Newell Brands said. The plan will be “substantially” completed by the end of fiscal 2024, and includes goals such as reducing the number of distribution centers and automation investments. Newell said it expects to realize annual pre-tax cost savings between $25 million and $35 million by the time the plan is in place. It will incur in about $37 million to $49 million in restructuring and restructuring-related charges, however. That includes charges related to severance payments and to reducing its footprint. Newell also said it expects to incur in $30 million to $40 million in capital expenditures related to the project. Shares of Newell ended the regular trading day up 3.2%.

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Disney Pulls Plug on $1 Billion Development in Florida

A new office complex, and relocation of a division from California, would have created more than 2,000 jobs but was scuttled as the company and Gov. Ron DeSantis continue to feud.

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By Brooks Barnes

In March, Disney called Gov. Ron DeSantis of Florida “ anti-business ” for his scorched-earth attempt to tighten oversight of the company’s theme park resort near Orlando. Last month, when Disney sued the governor and his allies for what it called “a targeted campaign of government retaliation,” the company made clear that $17 billion in planned investment in Walt Disney World was on the line.

“Does the state want us to invest more, employ more people, and pay more taxes, or not?” Robert A. Iger, Disney’s chief executive, said on an earnings-related conference call with analysts last week.

On Thursday, Mr. Iger and Josh D’Amaro, Disney’s theme park and consumer products chairman, showed that they were not bluffing, pulling the plug on an office complex that was scheduled for construction in Orlando at a cost of roughly $1 billion. It would have brought more than 2,000 Disney jobs to the region, with $120,000 as the average salary, according to an estimate from the Florida Department of Economic Opportunity.

The project, near Lake Nona Town Center, was supposed to cost $864 million, but recent price estimates have been closer to $1.3 billion. Disney had planned to relocate as many as 2,000 employees from Southern California, including most of a department known as Imagineering, which works with Disney’s movie studios to develop theme park attractions.

Most of the affected employees complained bitterly about having to move — some quit — but Disney held firm, partly because of a Florida tax credit that would have allowed the company to recoup as much as $570 million over 20 years for building and occupying the complex.

When he announced the project in 2021, Mr. D’Amaro cited “Florida’s business-friendly climate” as justification.

Mr. D’Amaro’s tone in an email to employees on Thursday was notably chillier. He cited “changing business conditions” as a reason for canceling the Lake Nona project. “I remain optimistic about the direction of our Walt Disney World business,” Mr. D’Amaro said in the memo. He noted that $17 billion was still earmarked for construction at Disney World over the next decade — growth that would create an estimated 13,000 jobs. “I hope we’re able to,” he said.

The memo, which was viewed by The New York Times, did not mention Mr. DeSantis. But the company’s battle with the governor and his allies in the Florida Legislature figured prominently into Disney’s decision to cancel the Lake Nona project, according to two people briefed on the matter, who spoke on the condition of anonymity to discuss private deliberations. A spokeswoman for Mr. Iger said he was not available for an interview.

A spokesman for Mr. DeSantis said in an email: “Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition. Given the company’s financial straits, falling market cap and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures.”

Florida officials have repeatedly pointed to the Lake Nona development as an example of economic vibrancy in Orlando, which suffered mightily during the pandemic. Noting that hotel chains and retailers were moving into the Lake Nona area in anticipation of Disney’s arrival, The Orlando Business Journal in January called the complex “a major economic driver for the region.”

In a statement, Jerry L. Demings, the mayor of Orange County, which includes Orlando, said it was “unfortunate” that Disney canceled its plans. “However, these are the consequences when there isn’t an inclusive and collaborative work environment between the state of Florida and the business community,” Mr. Demings said.

Gov. Gavin Newsom of California thanked Disney . “That’s 2,000+ jobs that will be welcomed back with open arms to the Golden State,” Mr. Newsom said on Twitter.

Disney has already incurred millions of dollars in expenses related to the project, including relocation costs for about 200 employees who have already moved to Florida from California. Mr. D’Amaro said in his note that the company would discuss options with those workers, “including the possibility of moving you back.” (It was not clear whether any of the people who quit rather than moved would have the chance to return to their jobs.) The Lake Nona project had initially been scheduled to open next year. Last July, Disney pushed back the move-in date to 2026, citing pandemic-related construction delays.

The Lake Nona campus, about 20 miles from Disney World near the Orlando International Airport, had been championed by Bob Chapek, who served as Disney’s chief executive from 2020 until he was fired last year. Mr. Iger, who came out of retirement to retake Disney’s reins, was much less enthusiastic about the project — even before the company became mired in its battle with Mr. DeSantis. As soon as he returned to Disney, Mr. Iger began telling lieutenants, for instance, that it made little sense to move Imagineering so far away from Disney’s movie studios. As he is fond of saying, “Creative teams need to be together.”

Mr. Iger has been systematically reversing Mr. Chapek’s decisions. In February, for instance, he announced that Disney would restructure its inner workings, ending a framework put in place by Mr. Chapek. In March, as part of wide-ranging layoffs, Mr. Iger shut down a 50-person metaverse project that Mr. Chapek had started.

Disney is also in the midst of cutting $5.5 billion in costs as it seeks to improve profitability, pay down debt and restore its dividend. Later on Thursday, for instance, Disney said it would close an underperforming luxury hotel at Disney World. The 100-room property, announced in 2017 and opened last year, simulated a two-night trip on a “Star Wars” spaceship . Bookings started at $6,000 for a family of four; the price limited interest. Disney spent hundreds of millions of dollars to build and market the immersive offering, which it called the Galactic Starcruiser.

Disney shares closed at about $94 on Thursday, down about 45 percent from two years ago.

Mr. DeSantis and Disney have been sparring for more than a year over a special tax district that encompasses Disney World. The fight started when the company criticized a Florida education law that opponents labeled “Don’t Say Gay” because it limits classroom instruction about gender identity and sexual orientation — angering Mr. DeSantis, who repeatedly vowed payback.

Since then, Florida legislators, at the urging of Mr. DeSantis, have targeted Disney — the state’s largest taxpayer — with a variety of hostile measures. In February, they ended Disney’s long-held ability to self-govern its 25,000-acre resort as if it were a county by giving Mr. DeSantis control over government services at the resort.

It was soon discovered that the previous, Disney-controlled board had approved development contracts that lock in a growth plan for the resort. An effort to void those agreements has since resulted in dueling lawsuits, with Disney suing Mr. DeSantis and his allies in federal court and the governor’s tax district appointees returning fire in state court.

An earlier version of this article referred incorrectly to the Lake Nona project that Disney had planned in Orlando, Fla. The project is near Lake Nona Town Center, not known by that name.

An earlier version of this article misstated the name of a luxury hotel that Disney plans to shutter. It is the Galactic Starcruiser, not the Galactic Starship.

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Brooks Barnes is a media and entertainment reporter, covering all things Hollywood. He joined The Times in 2007 as a business reporter focused primarily on the Walt Disney Company. He previously worked for The Wall Street Journal. @ brooksbarnesNYT