CINCINNATI--(BUSINESS WIRE)--If a silver lining can be found in leading a major job force reduction, Cincinnati attorney and businessman Timothy B. Matthews may have identified it. It’s the realization that the painful decisions made in 2008 during the worst recession of our times proved to save more than 1,200 jobs and was the first step in positioning the company for which he serves as CEO and president for future growth.
Recently, on behalf of Multimedia Commerce Group, Inc. (MCGI), parent company of Jewelry Television, Matthews accepted first place honors in the Major Deal Category for the “Refinancing of the Year” award at the 5th Annual Turnaround Awards sponsored by The M&A Advisor. MCGI, headquartered in Knoxville, Tennessee, and the nation’s fourth largest television shopping network, was nominated as a finalist in five categories for its success with turnaround, refinancing, and equity infusion transactions.
The award was given in recognition of a complex and interrelated series of transactions that have put Jewelry Television back on solid financial ground. It started with a substantial income tax refund that the company received as a result of amended Internal Revenue Code net operating loss carryback provisions in late 2009. Using the proceeds of tax refunds received in early 2010, the company was able to leverage the refunds’ value by negotiating a buy-out of its debt at a discount from one of its banks. The company was then able to negotiate an equity infusion valued at up to $60 million with a Singapore-based company, Gems TV Holdings Limited. With the combination of tax proceeds, reduced debt from the buyout, and the new equity infusion, Jewelry Television then was able to negotiate a new three-year bank credit agreement covering approximately $59 million in outstanding loans.
Jewelry Television was founded in 1993, and at its peak employed 2,200 people. In 2007, sales topped $515 million. Then the recession hit, and discretionary spending on items like jewelry slowed dramatically worldwide. Matthews took over as CEO and president in spring 2008.
Prior to joining MCGI, Matthews was a partner at the Cincinnati-based law firm of Keating Muething & Klekamp PLL, where he worked since 1987. Matthews now serves in the Of Counsel capacity for the firm’s Commercial Finance Practice Group.
“Tim’s experience as a corporate finance lawyer made him the ideal candidate to take on the situation at Jewelry TV,” said Michael J. Moeddel, a Partner at Keating Muething & Klekamp. Moeddel has served as legal counsel representing MCGI in its 2010 transaction with Gems TV.
“When you face a challenge like a dramatic downturn in the economy and fail to respond appropriately, then you put everyone's job at risk. I think that people here would generally acknowledge today that we made the right decisions, and we restored the company to a position where it can become profitable,” Matthews said.
The recognition was accorded by independent experts hired by The M&A Advisor, which was founded in 1998 to offer insights and intelligence on middle market activities.
Additional details are available online [http://www.kmklaw.com/news-listings-221.html].
About Keating Muething & Klekamp PLL
The law firm of Keating Muething & Klekamp PLL (KMK®), based in Cincinnati, Ohio, is a nationally-recognized law firm delivering sophisticated legal solutions to businesses of all sizes — from Fortune 500 corporations to start-up companies. KMK has been recognized as a leading law firm in Banking & Finance, Bankruptcy & Restructuring, Corporate & M&A law, and General Commercial Litigation in the 2011 edition of Chambers USA: America’s Leading Business Lawyers®. KMK has been ranked #1 in Ohio in Project Finance law and #1 in Cincinnati in Corporate, Employee Benefits, Land Use & Zoning, Municipal, Project Finance, Real Estate, and Personal Injury law in the 2011 edition of Best Lawyers in America®. KMK received 12 first tier rankings in the 2010 Best Law Firms survey (Metropolitan Cincinnati) by U.S. News and Best Lawyers. Founded in 1954, KMK has approximately 115 lawyers and a support staff of 150 employees. Additional information is available at www.kmklaw.com.