Case | HBS Case Collection | March 2009 (Revised November 2009)

WL Ross and Plascar

by C. Fritz Foley and Linnea Meyer

Abstract

How can distressed investors take advantage of the procedures governing an international bankruptcy? Wilbur L. Ross, chairman and CEO of the private equity firm WL Ross & Co., LLC, has the opportunity to bid for debt and equity claims on Plascar Industria e Comercio Ltda., the Brazilian subsidiary of the bankrupt global auto components company Collins & Aikman Corp. In evaluating this opportunity, students must analyze Ross's strategy to reshape a global industry with significant overcapacity, consider the opportunities created by the legal procedures that govern cross-border insolvencies, study a debt overhang problem, and consider how restructuring alternatives can address this problem.

Keywords: Borrowing and Debt; Private Equity; Insolvency and Bankruptcy; Investment; Cross-Cultural and Cross-Border Issues; Globalized Firms and Management; Globalized Markets and Industries;

Citation:

Foley, C. Fritz, and Linnea Meyer. "WL Ross and Plascar." Harvard Business School Case 209-091, March 2009. (Revised November 2009.)