Budd CRO Moore may be forced to resign after move to Alvarez & Marsal

By Caroline Salls

Pittsburgh, June 12 – Budd Co., Inc. chief restructuring officer Charles M. Moore might be forced to resign following his move to Alvarez & Marsal North America, LLC from Conway MacKenzie Management Services, LLC, according to a status update filed June 11 with the U.S. Bankruptcy Court for the Northern District of Illinois.

Budd said the bankruptcy court approved its motion to hire Moore, who was at that time with Conway MacKenzie, as CRO on May 9, 2014.

Under a management services agreement, the amounts owed to Moore for his duties as CRO were to be paid to Conway.

According to the status update, Moore terminated his employment with Conway and initiated employment with Alvarez & Marsal North America. Since his departure from Conway, Moore has continued to perform his duties as CRO without compensation, and Budd and Conway otherwise have continued to operate under the Conway management services agreement.

Budd said it has discussed at length an arrangement under which Conway would consent to Moore continuing as its CRO with compensation paid to Alvarez.

In addition, Budd said it previously informed counsel to the United Auto Workers (UAW) and the retiree for the company’s bankruptcy case of the status of this situation and related discussions, and the UAW and the committee have participated in calls with counsel to Budd and Conway in connection with potential resolution of these issues.

Budd said it has solicited input from the UAW and the committee regarding potential candidates to replace Moore, and the company continues to take into account the interests of its largest creditor constituents.

If Budd is unable to reach an agreement under which Moore can continue as Budd's CRO, with Conway's consent, it is likely Moore would resign. Toward that end, Budd said it has identified and interviewed multiple candidates.

Chicago-based Budd made stainless steel rail cars. The company filed for bankruptcy on March 31, 2014 under Chapter 11 case number 14-11873.

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