BCE Inc.: Worlds Largest LBO Deal in Jeopardy Harvard Case Solution & Analysis

In November 2008, BCI Inc (BCE) was on the way to achieving the December 2008 deadline for the completion of the $ 52-billion privatization deal. The consortium had previously submitted winning leveraged buyout (LBO) proposal, which is estimated to add an estimated $ 32 billion in debt to the company. Mere days before the transaction "end date" BCE executives were surprised to learn that the auditors KPMG advised the deal was under threat of collapse - based on points, which are usually special attention. The auditors noted that based on preliminary estimates, the company has passed the necessary "solvency test", which compared to the estimated value of assets of BC and liabilities, if BC must be eliminated. BC leaders had little time to determine if the transaction can still be saved, and if so, how? Conversely, if the transaction can not be completed, which would be the next steps the organization be? "Hide
by Stephen R. Foerster Source: Richard Ivey School of Business Foundation 4 pages. Publication Date: January 29, 2010. Prod. #: 909N29-PDF-ENG

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