Case | HBS Case Collection | March 2006 (Revised December 2013)

Hexcel Turnaround — 2001 (A)

by Paul W. Marshall, James Quinn and Reed Martin

Abstract

Hexcel's new CEO is faced with deciding how to "take out" $60 million in cash costs in fiscal 2002, as two of the company's end markets—electronics and commercial aerospace—are expected to decline precipitously. Options include closing plants, exiting a business, or undertaking a major headcount reduction. Includes a description of Hexcel's private equity relationship with Goldman Sach's Capital Partners and presents the financial challenges of renegotiating bank lending covenants and managing maturing debt. Focuses on selecting a turnaround approach from the point of view of a general manager (the CEO).

Keywords: Private Equity; Negotiation; Management Teams; Organizational Change and Adaptation; Strategy; Change Management; Crisis Management; Borrowing and Debt; Aerospace Industry; Electronics Industry; United States;

Language: English Format: Print 22 pages EducatorsPurchase

Citation:

Marshall, Paul W., James Quinn, and Reed Martin. "Hexcel Turnaround — 2001 (A)." Harvard Business School Case 806-099, March 2006. (Revised December 2013.)

Related Work

  1. Supplement | HBS Case Collection | June 2013

    Hexcel Turnaround—2001 (Video Supplement)

    This is the Video Supplement for Hexcel Turnaround - 2001(A), (B) and (C), HBS Cases 806099, 806100, 806101.

    Keywords: turnarounds; human capital; organizational change and transformation; organizational culture; organizational management; leadership; general management; private equity; bankruptcy; bankruptcy reorganization; financial crisis management; financial crisis; Acquisitions; Debt crisis; debt; debt management; Crisis Management; Financial Crisis; Private Equity; Public Ownership; Resignation and Termination; Restructuring; Air Transportation Industry; Communications Industry; Electronics Industry; Industrial Products Industry; Manufacturing Industry; United States; Europe;

    Citation:

    Sharpe, Jim. "Hexcel Turnaround—2001 (Video Supplement)." Harvard Business School Video Supplement 813-723, June 2013.  View Details
    CiteView DetailsPurchase Related

  2. Case | HBS Case Collection | March 2006 (Revised December 2013)

    Hexcel Turnaround — 2001 (A)

    Paul W. Marshall, James Quinn and Reed Martin

    Hexcel's new CEO is faced with deciding how to "take out" $60 million in cash costs in fiscal 2002, as two of the company's end markets—electronics and commercial aerospace—are expected to decline precipitously. Options include closing plants, exiting a business, or undertaking a major headcount reduction. Includes a description of Hexcel's private equity relationship with Goldman Sach's Capital Partners and presents the financial challenges of renegotiating bank lending covenants and managing maturing debt. Focuses on selecting a turnaround approach from the point of view of a general manager (the CEO).

    Keywords: Private Equity; Negotiation; Management Teams; Organizational Change and Adaptation; Strategy; Change Management; Crisis Management; Borrowing and Debt; Aerospace Industry; Electronics Industry; United States;

    Citation:

    Marshall, Paul W., James Quinn, and Reed Martin. "Hexcel Turnaround — 2001 (A)." Harvard Business School Case 806-099, March 2006. (Revised December 2013.)  View Details
    CiteView DetailsEducatorsPurchase Related

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Paul W. Marshall
Retired Professor of Management Practice

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