Case study

Note: The information included in this case study is in the public domain and is not subject to a Non-Disclosure Agreement. This case study provides an example of the management and leadership expertise and skills of Christopher Jones, IBC CEO.

BACKGROUND

With £Multi-million global sales, Just Group Plc ("the Group"), in the entertainment and publishing industry, was listed on the LSE Alternative Investment Market (AIM) with in excess of 50,000 shareholders. The Group and 15 subsidiary companies were placed in administration by the then board of directors following various management issues, including a major acquisition, which had resulted in serious financial difficulties.

In his capicity as a shareholder in the Group, Christopher Jones IBC CEO met with KPMG partners in their capacity as administrators. Discussions were conducted pertaining to a potential rescue operation of the Group and subsidiaries. However, the opinion of KPMG was that a rescue would be exceptionally difficult, if not impossible, to achieve.

A management team of six, headed by Christopher, was established which included Chartered Accountants who were also shareholders.

Given the loss of trust and confidence in the former board of directors of the Group which had resulted in a steady decline in the share price leading to a suspension by the LSE, in devising an effective strategy for a potential rescue operation, Christopher recognised the fundamental need to establish a solid relationship with all stakeholders, including the Group shareholders, creditors, strategic partners of the Group, and KPMG. To this end, a website was created for the purpose of effective communication, in addition, informative newsletters written by Christopher and approved by the managment team were distributed by post to all shareholders, importantly in order to reach those members who did not have access to the internet.

Printing and postage was significant due to the large volume of shareholders; this was funded by voluntary contributions being raised from shareholders via the new website and even some non-shareholders who were inspired by the story of the rescue attempt.

Extensive support of shareholders and creditors was in view of the effective communcationsFollowing several further meetings with KPMG, in view of , KPMG proposed the appointment of Christopher as a director of the Group and key subsidiary companies in order to faciliate exploratory discussions centred around potential opportunities to save the group from liquidation, including major negotiations, in an authorised capacity, with international strategic partners of the Group, including Universal Studios and Cadbury Schweppes.

In order to create and manage a team of former directors and businessmen, Christopher accepted the appointment, with the primary objective of implementing an appropriate rescue strategy which, in turn, would be subject to the achievement of a further major objective, to secure £multi-million funding with confidence in the Group at an all time low.

Undeterred by the magnitude of the overall aim and objectives and rising to the challenge, various strategic operational objectives were identfied by Christopher; to achieve the objectives, he initially identified that a major PR campaign was fundamental in order to achieve substantial international publicity and support. Christopher personally directed a campaign which proved extremely effective; he was interviewed three times on Bloomberg Television over the course of eight months - receiving significant support for his professionalism, integrity and transparency - and major coverage was achieved in the financial press, including the FT, The Times, The Independent, The Daily Telegraph and Investors Chronicle.

Christopher organised distribution centres in the South of England, Midlands and the North/Scotland, for shareholders to meet in order to fold the thousands of letters to shareholders, address-label envelopes and apply postage.

The support of strategic international partners of the Group was fundamental to achieving the rescue. Christopher led key negotiations over several months with the UK Managing Director of Universal and senior management of Cadbury Schweppes, securing their vital support. In addition, Christopher led successful negotiations with partners of London solicitors, Mishcon De Reya, to act on a contingency basis subject to the rescue being achieved and he obtained the critical support of the Head of Media Banking, Barclays Bank, London.

In excess of one hundred meetings were conducted over eight months due to the complexities of the rescue, however, Christopher was eventually succesful in implemention of a Company Voluntary Arrangement (CVA), raising £multi-millions, which ultimately enabled the Group and key subsidiary companies to have the Administration orders removed and full control of the Group vested in a new board of directors.

In view of Christopher's role and extensive efforts, KPMG requested that Christopher chair the EGM at which the successful rescue of the Group and subsidiary companies were announced and the new board of directors appointed.

The board subsequently proposed the appointment of Christopher as Executive Chairman of the new board as a result of his strong management and leadership expertise, in addition to his commitments, integrity and excellent communication skills demonstrated throughout the rescue process. An editorial in The Times by then editor Baroness Patience Wheatcroft praised the management of the rescue and magnitude of the achievement by Christopher and his team.

After overseeing the appointment of a CEO with requisite expertise in the entertainment industry, Christopher left the Group to focus on his business consultancy, prior to the subsequent completion of a merger between the Group and a US entertainment company.