Message from the President
John Dimovski, TMA Detroit Chapter President
    
I hope everyone was able to enjoy their holidays and stay warm as our lovely Michigan winter weather hasn't been very kind to us early this season.

The new year is behind us and it appears everyone is off to a busy start for 2018.   All indications are that the economy will remain robust for the coming year.   While some industry outsiders might believe TMA professionals experience a slow down in their practices during such economic times, our membership base and sponsorship support have remained strong because TMA professionals are about so much more than just turnaround.   Our members help businesses navigate turbulent situations of all sorts, and they help healthy companies improve their operations and enhance profitability to take best advantage of whatever economic environment their clients face.

Our TMA members have been busy both in their practices, and with their participation in our local Chapter events.  On January 16th, over 250 individuals attended the joint TMA Detroit and ACG Detroit Automotive Landscape event at the Detroit Athletic Club.  Panelists Michael Robinet and Peter Nagle, two of the industry's foremost experts and closest observers, delved into the global automotive landscape examining the near and long-term outlook with a focus on the challenges, barriers and opportunities that will shape the automotive industry. The program provided attendees insight from the automakers' perspective as well as the all-important supply base as it continues to be fertile ground for consolidation activity.

As usual, the TMA Board and Programming Committee have pulled together an impressive slate of events for the 2018 season. Our next event,"Women in Leadership" Wednesday, March 7th at the Townsend Hotel, is being jointly hosted by the TMA Network of Women and ACG's Women's Forum.  On March 21, we will host an event at Oakland Hills Country Club, "Forum Shopping in Bankruptcy - Time For Reform?   An Evening with Retired Chief Judge Rhodes and Chief Judge Shefferly," which will provide an in depth discussion of one of the hottest topics in business restructuring today and the Judges will discuss the profound impact that current bankruptcy venue law has on corporate restructuring, and past and present efforts to reform the system.  The TMA MidAmerican Regional Conference (MARC) is also scheduled for April 16 and April 17 in Chicago.   Finally, I am proud to announce that Tom Izzo, head coach of the Michigan State Spartans basketball team, will be speaking to our chapter on May 24th at Oakland Hills Country Club. I would encourage you register early for this event as we expect a full house! 
 
Finally, I would like to thank all of you who already renewed your memberships at the beginning of the year and remind those of you that have yet to do so.  Our Membership Committee puts forth a lot of effort tracking membership to ensure stability and growth for our chapter which is beneficial for all members.   Please be aware that you may be receiving a call from one of our committee members to solicit feedback about the chapter which is helpful for us in making improvements going forward.  
 
Thank you for your support!
 
John Dimovski
President - Detroit Chapter

Two Hikers and a Bear
By John L. Klehm

A bear jumps out of a bush and starts chasing two hikers. They both start running for their lives, but then one of them stops, pulls running shoes out of his backpack and puts them on. His friends says, "What are you doing? You can't outrun a bear!" The first hiker replies, "I don't have to outrun the bear; I only have to outrun you!"
 
As I meet with people at networking events, breakfasts, lunches or otherwise, I often ask "how's businesses?". RARELY do I get an answer along the lines of "having a great year", "grew our customer base double digits" or "able to price work fat". More often comments are like "tough finding new clients", "hard to get prospective clients to move", "little growth in our business" or "getting work, but pricing is ridiculously thin".
 
The reality is that for many professions and businesses, the economic landscape is like the "two hikers and a bear" analogy. The other hiker represents competitors and the bear, well, that's ultimately being unsuccessful. It is crucial to outrun competitors, particularly when the landscape provides few easy opportunities.
 
What "outrunning competitors" means is different for every business. It could be looking for ways to add value (potentially uncompensated), attending more networking events or scheduling more meetings with existing contacts. 
 
For professionals in the turnaround and restructuring industry, that may not be enough. Extra effort and focus may improve your standing, relative to competitors, but with little work available in the market, it may not make all that much of a difference.
 
The landscape WILL change, however. When, who knows. Certainly there are small signs of credit deterioration and potential economic weakness dribbling out, but with tax cuts approved and potentially a Federal infrastructure stimulus Bill in 2018, the economy could be robust for some time yet.
 
While the restructuring industry landscape remains challenging, by putting on the running shoes,  maybe you get a little ahead of the competition and are well positioned when things finally do turn. 

Chapter 11 Bankruptcy Venue Reform: Change on the Horizon? 
by Amanda Vintevoghel 

Pursuant to 28 U.S.C. § 1408, an entity may file for bankruptcy relief where it is domiciled, i.e. wherever it is incorporated or formed.  As most corporate and business practitioners know, a significant number of Michigan entities with their principal places of businesses located here in Michigan are incorporated or formed in Delaware or other foreign states.  This is for numerous reasons, one of which is the respective state's pro-business laws.  As a result, when it comes time to seek bankruptcy relief, Michigan entities that have their entire business enterprise located here, often file for relief under Chapter 11 in Delaware or another applicable foreign state.  This is true even though a Michigan entity may not conduct any business in the foreign state.

The controversies arising from this venue statute are not new.  However, a recently proposed bill, the Bankruptcy Reform Act of 2018, is seeking to change the venue provisions of 28 U.S.C. § 1408.  The proposed Act would require that an entity file for bankruptcy where its principal assets or principal place of business is located, not where it is domiciled.  Entities would therefore have to file for Chapter 11 relief in the same venue that they conduct business.

With this change to the venue statute, Michigan entities will not be able to "forum-shop" and file in the venue most beneficial to the entity.   What does this mean for local practitioners?  First, and the most obvious result, there will be more Chapter 11 filings in bankruptcy courts located in Michigan.  Second, more unsecured creditors, employees and retirees of such entities, who may not have the financial means to pursue action in foreign bankruptcy courts, will be able to more actively participate in the bankruptcy process.  Finally, other local industries could benefit from the higher volume, as well as larger and more complex, Chapter 11 filings.   Such industries include the legal and business service sectors, as well as hospitality and entertainment.

Even though the Bankruptcy Reform Act of 2018 could present significant positive results for Michigan, it does have its critics.  In particular, those opposed to the Act argue that, if passed, entities will be required to file in bankruptcy courts that do not have the experience or capacity to handle large or complex Chapter 11 cases.  This could result in inconsistencies in the bankruptcy process.  Additionally, some critics argue that this legislation could hurt the economy as a whole because states that are accustomed to having the significant filings, like Delaware, could see a reduction in employment.    

The Bankruptcy Reform Act of 2018 is currently being reviewed by a committee and it is still not clear if the Act will be adopted by Congress.  

First Place Winners at Trivia Night: Three Girls and a Guy
From Left to right: Katie Gerdes, Lisa Gretchko, John Klehm and Ursula Cauffiel.
Members in the News
Doug Brown,  Vice President Business Development, ASTI Environmental, recently won the Robert Sieghart Award for Enthusiasm for the Economic Development Profession from the Michigan Economic Developers Association.

Alex Calderone of Calderone Advisory Group, LLC, was quoted in Crain's Detroit Business in an article titled, "Why is this man eyeing Taubman Centers."
 
Alex Calderone of Calderone Advisory Group, LLC was quoted in Crain's Detroit Business in an article titled, "The quest for Amazon HQ2: Detroit-Windsor bid could be attractive."
 
Alex Calderone of Calderone Advisory Group, LLC was quoted in the Detroit Free Press in an article titled, "Kmart closing store in St. Clair Shores, Kroger to open new grocery there."
 
Alex Calderone of Calderone Advisory Group, LLC was quoted in CFO.com in an article titled, "Supply Chains Break Out."
 
Alex Calderone of Calderone Advisory Group, LLC was quoted in U.S. News & World Report in an article titled, "Why DIY investing is Risky."

John Dimovski, TMA President and co-founder of Harmon Partners, and Brendan Best, TMA President Elect and Partner at Varnum, presented to the Institute of Management Accounts on Thursday, February 15, regarding "Dealing with Financial Distress - Root Causes, End Games and Everything In-Between."

Katie Gerdes , Associate at   O'Keefe , received the designation of Certified Fraud Examiner (CFE) from the Association of Certified Fraud Examiners.

Patrick O'Keefe, founder and CEO of O'Keefe was recognized again this year as one of the top 100 Irish-American leaders in business.  He was honored at the 32nd Annual Business 100 Awards dinner on Wednesday, December 13th at the Metropolitan Club of New York in Manhattan.
 
Patrick O'Keefe, founder and CEO of  O'Keefe, will be speaking on a panel at American Bankruptcy Institute's Central States Bankruptcy Workshop, titled, "Hiring and Roles of Receivers and Examiners".  The workshop is June 7-9, 2018, at the Grand Geneva in Lake Geneva, Wisconsin.

The 2018 M&A Advisor Leadership Award will be presented to  Patrick O'Keefe, Founder and CEO of O'Keefe, on March 21st
 
Matthew Rizzo of O'Keefe has been promoted to Director. 
 
Griffin Wagner of O'Keefe,   has been promoted to Senior Associate.  

Newsletter submissions
We are always looking for new content for our newsletter. Have an article you wrote? Received a promotion? Quoted in a newspaper or other publication? We want your information so we can help promote you, our member!

Please send us your submissions for our next newsletter  here.

  
  

Upcoming Events

March 7
Women In Leadership
Hosted by Network of Women
The Townsend Hotel, Detroit

March 21
Forum Shopping in Bankruptcy - Time For Reform?
An Evening with Retired Chief Judge Rhodes and Chief Judge Shefferly
Oakland Hills Country Club, Bloomfield Hills

April 16-17
MidAmerica Regional Conference
Chicago, IL

June 18
Annual Golf Outing
Wabeek Country Club, Bloomfield Hills

Please visit our website for more information and to register for these and other events.


Board of Directors |  2017-2018

John Dimovski, President
Harmon Partners

Brendan Best, President-Elect
Varnum LLP

Jason Bank, Immediate Past President
Kerr, Russell and Weber, PLC

Allison Bach, Director
Dickinson Wright

Matt Dekutoski, Treasurer
Crestmark Bank

Laura Eisele, Director
Laura J. Eisele PLC
  
Mike Hausman, Director
Conway MacKenzie

Russ Long, Director
O'Keefe
  
Chuck  Mouranie , Director
EDSI Consulting

Eric Novetsky, Director
Jaffe Raitt Heuer & Weiss, P.C.

Ted Sylwestrzak, Director
Dickinson Wright

Amanda Vintevoghel, Director
The Dragich Law Firm PLLC
  
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Chapter Contact
Sharon Kimble
 Chapter Executive
734.757.4689