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• Case | HBS Case Collection | 2013 (Revised from original 2011 version)

  Kroll Bond Rating Agency

  Bo Becker

  The established credit raters were criticized for inflating the mortgage credit bubble that imploded in 2008. A new rating agency, KBRA, is considering how to capitalize on the opportunity this presents and how to enter the industry. A small group of managers have to decide on a business model, how to meet hiring and funding needs, and what types of ratings to start with: municipal, corporate, or structured. Where are the needs for new ratings stronger? How can investors be convinced to use the new ratings? How can KBRA compete with Fitch, Moody's, and S&P?

  Keywords: Financial Instruments; Financial Management; Financial Services Industry;

  Citation:

  Becker, Bo. "Kroll Bond Rating Agency." Harvard Business School Case 212-034, April 2013. (Revised from original October 2011 version.)

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• Case | HBS Case Collection | 2013 (Revised from original 2012 version)

  Preem (A)

  Bo Becker, Annelena Lobb and Aldo Sesia

  High yield bond fund Proventus Capital Partners (PCP) has invested in underwater bonds issued by Preem, a large oil refinery. As maturity approaches, in the midst of financial crisis, Preem appear unlikely to be able to refinance. Meanwhile, Prreem has a complicated multi-currency capital structure with both senior, secured bank loans and junior bonds. PCP has to decide whether to push for bankruptcy in a European court, or to push for out of court renegotiations. The case is a tool for studying the difference between liquidity problems and solvency problems, weighing bankruptcy vs. out of court restructuring, and dealing with negotiations between creditors.

  Keywords: Insolvency and Bankruptcy; Financial Liquidity; Restructuring; Courts and Trials; Negotiation; Bonds; Mining Industry; Energy Industry; Europe;

  Citation:

  Becker, Bo, Annelena Lobb, and Aldo Sesia. "Preem (A)." Harvard Business School Case 213-008, March 2013. (Revised from original August 2012 version.)

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• Supplement | HBS Case Collection | 2013 (Revised from original 2012 version)

  Preem (B)

  Bo Becker

  Preem's creditors and owners made a deal with an 18 month extension of debt maturities and a minor equity injection in 2009. Now, in 2010, the new maturity is approaching, and refinancing is again unlikely. This time, all the firm's debt is coming due. What went wrong in the first restructuring and what should PCP do to facilitate a more permanent solution?

  Keywords: Restructuring; Equity; Problems and Challenges; Mining Industry; Energy Industry; Europe;

  Citation:

  Becker, Bo. "Preem (B)." Harvard Business School Supplement 213-014, March 2013. (Revised from original August 2012 version.)

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