Cerberus Capital Management

View previous topic View next topic Go down

Cerberus Capital Management

Post by C on Wed Jan 28, 2009 4:41 pm

Private equity firms like Cerberus Capital Management--owner of the recently closed Kimberly, Wis., paper mill--have gained enormous
attention in recent years because of their growing role in the U.S. economy. These firms have gobbled up well-known companies, such as

Neiman Marcus, Metro-Goldwyn-Mayer, Toys "R" Us, Chrysler, Linens 'N Things and Whole Foods, among others.

article: Pulp Friction


Kimberly, WI mill closure
avatar
C
Admin

Number of posts : 707
Registration date : 2008-05-24
Location : Rumford, ME

View user profile

Back to top Go down

Re: Cerberus Capital Management

Post by Admin on Wed Jan 28, 2009 10:20 pm

I read that article and I'm still shivering. That is a true life horror movie, created by people that have no regard for human kind, only for there own pockets. It's the type of thinking that drove us into the economic crisis we are in today.
avatar
Admin
Admin

Number of posts : 356
Registration date : 2008-05-24

View user profile http://rivervalleyfreepress.easydiscussion.net

Back to top Go down

Re: Cerberus Capital Management

Post by Timeout on Wed Jan 28, 2009 10:49 pm

Take the time to read the article C posted. Cerberus shut down a New Page plant in Wisconsin and won't resell to prospective buyers because it wants to control the market. The place is more profitable to them closed:

"By forcing the Kimberly plant’s closure, Cerberus is reducing the supply of coated paper, thereby controlling supply and demand, and maximizing profits, says a labor economist familiar with the case. In other words, by reducing the coated-paper supply, the company can drive up the price that its eight U.S. plants can charge."

Doing so, the giant corporation essentially killed the town. Interesting how it had the opposite effect for instance on the fire department than what some people seem to desire for Rumford:

"The village’s volunteer fire department — which depended heavily on mill workers — will likely be disbanded and replaced with a much more expensive arrangement for fire protection. The mill used to grant its volunteer firefighters time off the job to fight local fires. And with discarded workers leaving the area to find work elsewhere, the village will need to fill the void."

I hope that people here will not blame and attack each other, i.e., union vs. non-union, etc., etc. These events are far beyond the control of our small town.
avatar
Timeout

Number of posts : 829
Registration date : 2008-06-14

View user profile

Back to top Go down

Re: Cerberus Capital Management

Post by Timeout on Wed Jan 28, 2009 10:53 pm

Admin, that is creepy...there is a footnote in the article that says Cerberus is the name of the three-headed dog that guards the gates of hell.
avatar
Timeout

Number of posts : 829
Registration date : 2008-06-14

View user profile

Back to top Go down

Re: Cerberus Capital Management

Post by T on Wed Jan 28, 2009 11:14 pm

...and in case you didn't know, former Vice President Dan, one potatoe two potatoe, Quayle is chairman of global investments for Cerberus Capital Management.

I find Dan Quayle and Sarah, the pit bull, Palin equally incompetent, but both are perfectly suited to guard the gates of hell.

T

Number of posts : 2760
Registration date : 2008-06-23

View user profile

Back to top Go down

Re: Cerberus Capital Management

Post by Timeout on Wed Feb 04, 2009 11:35 am

So I've been pretty interested in Cogen...seems to be the money-maker. What I understand is that Cerberus, the investment company. owns Co-gen and it's set up as a limited partnership with I believe 6 partners. I don't believe NewPage (the parent company to the mill here) owns much or any of it. So, the profits from Co-gen are paid as dividends to the limited partners and not back to the mill. One side note of this is that by having the parts of the mill such as the some parcels of land or certain buildings under different ownership, they don't have to pay as much in taxes. Basically the parts are worth less independently than they would be if taxed as a whole. We've heard lots of rumors, etc. about the mill...ownership of Co-gen is one aspect of the discussion.
avatar
Timeout

Number of posts : 829
Registration date : 2008-06-14

View user profile

Back to top Go down

Re: Cerberus Capital Management

Post by Timeout on Wed Feb 04, 2009 11:48 am

We went through a similar shift in management and in thinking when Sunday River became part of American Skiing Company. It was no longer run as the "family-oriented" business that had built the company. I remember standing in the driveway with the rest of the crew at Mt. Ops and hearing the news. Some were excited and I didn't understand at the time those voices that knew it was the beginning of the end of an era.

Loyalty is a powerful thing...it's hard to see clearly sometimes.
avatar
Timeout

Number of posts : 829
Registration date : 2008-06-14

View user profile

Back to top Go down

Re: Cerberus Capital Management

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum