Ivey Publishing

Product Details

P.A. Bergner & Co.
Product Number:
9A96B015
Publication Date:
05/14/1996
Revised Date:
02/05/2010
Length:
15 pages
Product Type:
Case (Field)
Source:
Ivey
The executive vice-president finance and MIS of P.A. Bergner & Co. (Bergner), a large mid-western U.S.-based department store retailer, received word that Bank One had pulled its $32.1 million letter of credit. Buoyed by the successful acquisition of Boston Stores, Bergner acquired Carson, Pirie Scott & Co. The downturn in the economy coupled with excessive debt levels has precipitated a crisis. The focus of the case is on formulating a restructuring plan, including alternatives under bankruptcy legislation. The analysis requires the determination of Bergner's viability, optimal capital structure, value and reorganization plan. (A Microsoft Excel spreadsheet is available for use with this case, product 7A96B015.)
Learning Objective:
  • To teach students about deal making in a last resort situation.
  • To provide an introduction to bankruptcy legislation.
  • To re-enforce the implications of financial leverage.
  • To re-enforce process for choice of financing alternatives.
  • To provide an introduction to debtor-in-possession (DIP) financing.
Issues:
Disciplines:
Finance,  International
Industries:
Retail Trade
Setting:
USA, Large, 1991
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
Associated Materials
Supplements: 7A96B015 (147 KB)
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