Select exits bankruptcy, gets new board of directors
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Select exits bankruptcy, gets new board of directors
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The Select Family of Staffing Companies, the 10th-largest U.S. staffing firm, exited Chapter 11 and announced an investor-appointed board of directors that includes high-level staffing executives who formerly served at Randstad and TAC Worldwide.
Select had filed for a pre-packaged Chapter 11 at the beginning of April. It emerged from the process with $719 million in new capital. In addition, debt and related liabilities reduced by $450 million.
“Today marks a new chapter in Select’s story. We have completed our recapitalization and are now poised for ongoing success,” said Select CEO Steve Sorensen. “With our lenders, we accomplished our shared goals efficiently and without impact to our valued customers or employees.”
The Santa Barbara, Calif.-based firm’s new capital includes $229 in new cash equity from investment firms, including Anchorage Capital Group and Redwood Capital Management. Select also entered into a $120 million asset-based credit line led by Royal Bank of Canada and a $370 million term loan led by Credit Suisse AG.
The investment firms now own a majority of Select with the largest single share being approximately 20 percent. Sorensen remains the largest individual (noninstitutional) shareholder, with a share in the teens.
In addition, the recapitalization included the contribution of Decca Consulting to the company. Decca is an oil and gas staffing firm that was held by Sorensen independent of Select. It provides mostly degreed engineers in the oil and gas field. It is based in Calgary, Canada.
Select also named new board members:
Gregory Netland, former CEO of North America for Randstad Holding NV, one of the world’s largest staffing firms
Gary Di Camillo, former CEO of TAC Worldwide Companies and Radia International (now Advantage Resourcing)
Al Aguirre, former corporate attorney at Sullivan & Cromwell and managing director at Warburg Pincus
Stephen Giusto, former CFO of executive search firm Korn Ferry International Inc.
Sorensen will also remain on the board
Select went through the bankruptcy process smoothly and there were no layoffs.
Paul Sorensen, president of Select, said bankruptcy is a loaded term but likened the process for Select to more of a back-office financial transaction.
“The business is thriving and we are ahead of plan this year,” Paul Sorensen said.
”As we look to the future, we see many exciting opportunities on the horizon that we can now pursue with our strong capital position,” Sorensen said. “Thanks to the support of our customers and commitment from our valued associates, colleagues, and franchisees, we continued to grow our business during this process and we intend to continue the momentum with this new solid foundation for growth.”
The company’s brands include Select Staffing (SelectRemedy in Illinois), Remedy Intelligent Staffing, Select Truckers Plus, Westaff and RemX Specialty Staffing. It also has divisions focused on professional development training (Power Training Institute) and a managed services program (SinglePoint Solutions).