Alphatec case
6. How would the outcome have differed in the US? In the
UK?
5. What were the problems of Thailand’s old bankruptcy law? Would you change anything in the new law?
4. Why are AIG and Investor AB willing to invest in
ATEC? Returns and risks?
3. As one of ATEC’s banks, would you have voted for the its modified bankruptcy reorganization plan?
2. As one of ATEC’s banks, would you have voted for the
February 1998 out-of-court restructuring proposal?
1. How much is management to blame for ATEC’s problems? Bad management; Bad business; or Bad capital structure?
Cohort 3 – Group 5
The management have been falsified financial statements for several years, two sets of records were delivered: one for the management and the other for public.
The PW report highlighted significant misstatements as regards to the financial reports: example of the net assets overstatements.
4. Bad financial management: fraud ?
ALPHATEC ELECTRONICS PLC. CASE STUDY
Low transparency: employees were not informed of the financial situation
Disconnection between the BoD and the operations:
Charn was the only one allowed to interact with directors, and because of their lack of knowledge in electronic industry (6 bankers out of the 11 directors), they were only relying on Charn advices.
Moreover, each company was supposed to report directly to Charn.
2. … but a bad Corporate Governance.
Conflict of interests: he had withdrawn money from
ATEC without authorization, some transactions having been reported to companies under his control While creating the Alphatec Group, Charn built a centralized management structure, splitting group managers into several departments, to manage the several businesses, which were set as separate legal entities.
Lack of independence: Charn family members were appointed at important management positions of the group, his former finance professor was also at the head of the Bod
3. The key role of
UK?
5. What were the problems of Thailand’s old bankruptcy law? Would you change anything in the new law?
4. Why are AIG and Investor AB willing to invest in
ATEC? Returns and risks?
3. As one of ATEC’s banks, would you have voted for the its modified bankruptcy reorganization plan?
2. As one of ATEC’s banks, would you have voted for the
February 1998 out-of-court restructuring proposal?
1. How much is management to blame for ATEC’s problems? Bad management; Bad business; or Bad capital structure?
Cohort 3 – Group 5
The management have been falsified financial statements for several years, two sets of records were delivered: one for the management and the other for public.
The PW report highlighted significant misstatements as regards to the financial reports: example of the net assets overstatements.
4. Bad financial management: fraud ?
ALPHATEC ELECTRONICS PLC. CASE STUDY
Low transparency: employees were not informed of the financial situation
Disconnection between the BoD and the operations:
Charn was the only one allowed to interact with directors, and because of their lack of knowledge in electronic industry (6 bankers out of the 11 directors), they were only relying on Charn advices.
Moreover, each company was supposed to report directly to Charn.
2. … but a bad Corporate Governance.
Conflict of interests: he had withdrawn money from
ATEC without authorization, some transactions having been reported to companies under his control While creating the Alphatec Group, Charn built a centralized management structure, splitting group managers into several departments, to manage the several businesses, which were set as separate legal entities.
Lack of independence: Charn family members were appointed at important management positions of the group, his former finance professor was also at the head of the Bod
3. The key role of