Recapitalization & Restructuring Case Studies

Background:

• Champion Enterprises, Inc. ("Champion" or the "Company") is an international manufacturer of factory-built homes and steel-framed modular buildings, with operations in the United States, Canada, and the United Kingdom. The Company, headquartered in Troy, Michigan, operates 17 homebuilding facilities in the U.S., in addition to five manufacturing facilities in Canada, and two modular construction locations in the U.K.
  
• Due to the severity and breadth of the global economic downturn, along with challenges posed by the U.S. housing environment, Champion experienced a steep decline in demand for its products during late 2008 and into 2009. As a result of the Company's declining profitability and increase in leverage, Champion violated the financial covenants imposed by the Company's senior credit facility at the end of 2Q09. Due to these covenant violations and a limited liquidity position, Champion filed a voluntary petition in the District of Delaware under Chapter 11 of the U.S. Bankruptcy Code on November 15, 20.

Role of Morgan Joseph Professionals

• Champion retained Morgan Joseph as its exclusive investment banker and financial advisor in Spring 2009 to explore all available strategic alternatives designed to deleverage its balance sheet and maximizing the value of its operations.
  
• Following a broad marketing effort that sought to maximize value through a sale of the business as a whole or in segments, Champion was sold pursuant to Section 363 of the U.S. Bankruptcy Code to a group of investors. The investor group contributed $50 million of new capital into the business, providing the Company with adequate liquidity for working capital needs and future pursuit of growth opportunities.