Fruehauf Corporation: a casualty of the debt-crazed '80s

Article Abstract:

A highly leveraged buyout led to the failure of Fruehauf Corp during the late 1980s. Corporate raider Asher Edelman attempted a hostile takeover of Fruehauf in Mar 1986. Fruehauf's stock price rose to $20.25 per share, and the firm became highly leveraged. The takeover bid was repelled, and stockholders received either $49.50 per share in cash or securities of equal value. This required the firm to take on a $1.4-billion debt, resulting in an annual debt load of slightly more than $100 million, which was much higher than Fruehauf's 1984 profits. Fruehauf attempted to reduce the debt by divesting non-core business assets and improving operations in an effort to generate cash, but unexpected problems caused cash flow to be hurt. Fruehauf, which was losing $1 million per week in early 1989, continued to close plants, lay off workers, and divest assets. The last unit of the firm was sold in Jul 1989. The bidding war for Fruehauf led to its failure because the payout was greater than the true value of the firm.

Motor vehicle parts and accessories, Management, Case studies, Automobile equipment and supplies industry, Automotive parts industry, Finance, Leveraged buyouts, Business failures, company profile, Edelman, Asher, Fruehauf Corp.

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Mad cows or mad world?

Article Abstract:

Mad cow disease became rampant in the UK in 1996, prompting the British government to order the slaughter and incineration of most of its cattle. Despite this move, there have been several thousahd unreported cases of mad cow disease all over Europe.

Health aspects, United Kingdom, Reports, Bovine spongiform encephalopathy

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Michigan's Upper Peninsula

Article Abstract:

Michigan's Upper Peninsula has 1,700 miles of shoreline full of historical places. Its numerous historical places, such as Fort Mackinac, can be seen by travelling through its equally historic highways.

Historic sites, Upper Peninsula (Michigan)

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