Contact: Sorrelle Cooper
Deloitte
Public Relations
020 7303 4820
The launch of Aaronite, the new Chief Restructuring Officer business, has been announced today by Deloitte and the Executives of Aaronite Partners Ltd.
Commenting on the announcement, Aidan Birkett, Managing Partner of Corporate Finance at Deloitte, said: “Aaronite will offer Chief Restructuring Officer services which will complement the current offerings of the reorganisation services practice at Deloitte. Iain Lynam and Mike Grant, two highly experienced and well-respected company doctors, own and lead the Aaronite business.
“Mike Grant has held senior positions at Railtrack, Eurotunnel and Cable & Wireless and Iain is currently working with the North West Health Authority and is also a Director of the Society of Turnaround Professionals.”
“Aaronite is a distinct legal entity, which is in an exclusive marketing arrangement with Deloitte, supplying Chief Restructuring Officers (CROs) to businesses in distress.”
According to new Deloitte research, released today to coincide with the launch of Aaronite, the average time taken by companies to recover when the share price is in decline is 26 months. However, when a CRO has been appointed to manage the turnaround, the share price recovers on average in ten months, less than half the time otherwise taken.
The analysis is based on 71 major European restructurings including Eurotunnel, Jarvis, Queens Moat Houses, Energis and Marconi.
Gerry Loftus, partner in the Reorganisation Services practice at Deloitte, commented: “The creation of Aaronite is timely. The research by Deloitte helps to illustrate why the role of the CRO has become much more prevalent in recent times. Lenders, companies and equity investors now expect a CRO, taking an executive role, to be appointed in restructuring situations to deliver a turnaround plan. Companies that do not react quickly pay the price.”
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Notes to editors
About the research
Deloitte surveyed 71 companies across Europe (France, Italy, UK, Germany, Luxembourg, Norway, Netherlands, Poland, Sweden).
About Aaronite
Aaronite Partners Ltd (“Aaronite”) has been formed by two highly experienced CROs – Mike Grant and Iain Lynam. Aaronite will offer CRO services which will complement the current offerings of the reorganisation services practice at Deloitte.
Deloitte has an exclusive commercial marketing arrangement with Aaronite. On client assignments Deloitte and Aaronite will have separate letters of engagement. Deloitte arrangements will be directly with the client and not Aaronite. In the event of Deloitte staff secondments these too will be arranged directly with the client and not Aaronite.
Aaronite is a separate legal entity with its own constitution. For the avoidance of doubt, it is entirely separate from Deloitte & Touche LLP. No partners or employees of Deloitte hold or will hold an equity interest in the business and/or a directorship of the business.
About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT.
Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.
The information contained in this press release is correct at the time of going to press.
