Case Study
The Alphatec Rehabilitation

Prof. Ian Giddy, New York University

Alphatec Electronics Pcl (HBS Case  9-200-004)

This case study deals with a company in Thailand facing a post-bankruptcy rehabilitation negotiation.  Management wants to save the company, creditors want to protect their interests and recover as much as possible, potential new equity investors were threatening to pull out, and Alphatec's founder and former CEO was trying to scuttle the plan in the courts. 

  • What really caused Alphatec's collapse?
  • Summarize the January 1999 rehabilitation proposal.
  • What, specifically, is the "performance-linked obligation?"
  • Evaluate the January 1999 Rehabilitation Plan and the financial projections, from the point of view of:
    • Existing creditors
    • New equity investors
    • A possible management buyout. -