CHARLOTTE, N.C., April 27, 2015 /PRNewswire/ -- Campus Crest
Communities, Inc. (NYSE: CCG) (the "Company" or "Campus Crest"), an
owner and manager of high-quality student housing properties, today
announced that the Board of Directors is in the process of
retaining Alvarez & Marsal North
America, LLC ("Alvarez & Marsal"), a leading management
consulting firm, to support its ongoing efforts to improve
operational efficiency, drive profitable growth and deliver maximum
shareholder value. As part of Alvarez & Marsal's mandate, the
Board has authorized the appointment of David Coles as interim Chief Executive Officer
and John Makuch as interim Chief
Financial Officer, which is subject to the finalization of an
engagement letter expected to be executed within a couple of days.
Both Mr. Coles and Mr. Makuch serve as Managing Directors at
Alvarez & Marsal. Scott Rochon,
who previously acted as interim Chief Financial Officer, will
continue to serve as Chief Accounting Officer. Aaron Halfacre will remain President and Chief
Investment Officer, working alongside Mr. Coles and Mr. Makuch.
Richard Kahlbaugh, Non-Executive
Chairman stated, "We believe that David and John will provide
invaluable support as we continue to execute on Campus Crest's
ongoing initiatives. In addition to David and John's operational
expertise and senior leadership experience, Campus Crest will have
access to the resources and support of Alvarez & Marsal. I am
confident that the leadership combination of David, John and Aaron
will enable us to successfully complete our ongoing strategic
review, reposition our portfolio, manage our lender relationships
and accelerate our performance improvement to the benefit of our
shareholders."
Mr. Coles commented, "I am excited to step into the interim CEO
role and join Aaron and the senior leadership team at Campus Crest.
With our experience implementing financial and operational
performance improvements, I am confident that John's and my
background will complement the existing senior leadership team's
institutional knowledge. I look forward to working together to
successfully execute on the Company's strategic repositioning and
ongoing review of strategic alternatives."
Mr. Makuch added, "Campus Crest is focused on pursuing its
strategic repositioning and fortifying its balance sheet and I look
forward to contributing to those ongoing efforts. Additionally, the
continuation of Campus Crest's senior leadership team will allow a
seamless transition and integration process for David and me.
Campus Crest has made significant strides and I am confident that
this leadership team will build on the Company's recent
progress."
Aaron Halfacre, President and
Chief Investment Officer, commented, "I am pleased to welcome David
and John to the Campus Crest team at such an important time for our
company. Over the last few months, our team has taken meaningful
actions to position the Company for success and I am confident that
the expansion of our c-suite bandwidth will better position us to
continue our momentum. I look forward to joining forces with David
and John and capitalizing on their deep financial and management
expertise as well as utilizing Alvarez & Marsal's vast
resources to unlock the value of our company."
Alvarez & Marsal is a leading outsourced solutions provider
offering leadership, problem-solving and value-creation to
companies, with a focus on preserving and maximizing enterprise
value. In particular, the firm will provide key interim management
positions and resources to assist the Company in driving the
strategic alternative process, repositioning its portfolio
reposition, improving operational and financial processes and
capabilities and rationalizing general and administrative expenses
to optimize value.
Campus Crest is continuing with its comprehensive and thorough
analysis to explore a broad range of strategic, operational and
financial alternatives to further enhance shareholder value. The
Company remains committed to maximizing shareholder value and will
continue to work closely with its outside financial advisor, Moelis
& Company LLC, and legal advisor, Kilpatrick Townsend & Stockton LLP, to
ensure a thorough and robust process. There can be no assurance
that the exploration process will result in the Company pursuing a
particular transaction or completing any such transaction. The
Company expects to disclose its progress on its review of strategic
alternatives during its first quarter 2015 conference call.
About David
Coles
David Coles is a
Managing Director with Alvarez & Marsal. He specializes in
business performance improvement, profitability analysis, working
capital management and interim management. His primary areas of
expertise include the formulation and implementation of improvement
plans for underperforming businesses. Mr. Coles has served in
senior advisory and interim CEO, CRO, CFO and COO roles. Mr. Coles
most recently served as an advisor to M*Modal Inc. a $300 million revenue provider of transcription
services and ASR software. Prior to M*Modal Inc., from
2011-2012, Mr. Coles was CFO of PHH Corp, a publicly traded
residential mortgage originator, servicer and fleet management
business. His role at this business involved managing
internal and external financial reporting, evaluating strategic
alternatives, capital raising, rating agency and investor
communications, cash flow projection/reporting and working capital
improvement.
About John
Makuch
John Makuch is
a Managing Director with Alvarez & Marsal in Atlanta. During the past 22 years, Mr. Makuch
has assisted firms execute financial and operational performance
improvement initiatives and has served as an interim officer of his
clients, including roles as a CEO, COO, CFO, CRO, Controller and
Treasurer. Mr. Makuch recently served as the Chief Restructuring
Officer for a national developer and builder of multi-family
housing and student housing projects. His position's role included
forecasting and managing liquidity, developing a multi-year
business plan and disposition plan for certain assets, assisting
the management team with rationalization of corporate overhead
expenses, separating the multi-family business from the student
housing business, and negotiating a restructuring of the company's
credit agreement with a lender group.
About Campus Crest Communities, Inc.
Campus Crest
Communities, Inc. is a leading owner and manager of high-quality
student housing properties located close to college campuses in
targeted markets. It has ownership interests in 84 student housing
properties with over 46,000 beds across North America. Additional information can be
found on the Company's website at http://www.campuscrest.com.
Forward-Looking Statements
This press release,
together with other statements and information publicly
disseminated by the Company, contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. The Company intends such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 and includes this statement for
purposes of complying with these safe harbor provisions.
Forward-looking statements relate to expectations, beliefs,
projections, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not
historical facts. In some cases, you can identify forward-looking
statements by the use of forward-looking terminology such as "may,"
"will," "should," "expects," "intends," "plans," "anticipates,"
"believes," "estimates," "predicts" or "potential" or the negative
of these words and phrases or similar words or phrases which are
predictions of or indicate future events or trends and which do not
relate solely to historical matters. You should not rely on
forward-looking statements since they involve known and unknown
risks, uncertainties, assumptions and contingencies, many of which
are beyond the Company's control, that may cause actual results to
differ significantly from those expressed in any forward-looking
statement. All forward-looking statements reflect the Company's
good faith beliefs, assumptions and expectations, but they are not
guarantees of future performance. Furthermore, except as otherwise
required by federal securities laws, the Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
new information, data or methods, future events or other changes.
For a further discussion of these and other factors that could
cause the Company's future results to differ materially from any
forward-looking statements, see the risk factors discussed in the
Company's most recent Annual Report on Form 10-K, as updated in the
Company's Quarterly Reports on Form 10-Q.
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SOURCE Campus Crest Communities, Inc.