Huntington-based Champion Industries Inc. has hired a chief restructuring officer after defaulting on its debt last month.
The corporate parent of Chapman Printing, Capitol Business Interiors and the Huntington Herald-Dispatch newspaper retained Timothy D. Boates of RAS Management Advisors LLC on April 8, according to a filing with the U.S. Securities Exchange Commission.
"Mr. Boates will have full responsibility for all of Champion's operations, including but not limited to day-to-day management, and will report directly to Champion's board of directors," the filing said.
The commercial printing company is struggling against a decrease in earnings and a significant amount of high-interest debt on its balance sheet.
Champion bought The Herald-Dispatch in 2007 for $77 million, financing much of the purchase with debt. The deal was revealed in late June 2007, when Champion's stock was trading at $7.20 a share.
One year ago Champion's stock was trading at 89.9 cents a share. On Friday it traded at 12.2 cents a share.
On March 15, Champion reported a fiscal first quarter loss of $3.3 million, or 29 cents per share, down from a loss of $89,000 (1 cent a share) in the first quarter of 2012.
On March 25, the company received a notice of default from Fifth Third Bank of Huntington, which, along with several other banks, has provided the company with a revolving credit facility and term loan.
While the company has made all of its required principal and interest payments to the banks, Champion failed to meet minimum earnings before interest, taxes, depreciation and amortization requirements spelled out in the debt covenants.