This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Diamond Foods Hires Kodak's Adviser

Stocks in this article: DMND PG

NEW YORK( TheStreet) - The consulting firm that is advising Eastman Kodak (EKDKQ) on its bankruptcy reorganization is now contributing its financial savvy to Diamond Foods (DMND) after an audit investigation revealed two years of accounting misstatements at the company, leading to the dismissal of two top executives.

On Wednesday, Diamond Foods hired Michael Murphy, a managing director at restructuring specialist Alix Partners to be the firm's CFO, replacing Steven Neil effective immediately as part of a sweeping management and board shakeup.

Neil and Michael Mendes, who had served as Diamond Foods' CEO and chairman, have been placed on administrative leave. Board director Rick Wolford was named acting CEO, while independent director Robert Zollars will become the snack foods company's chairman.

For Alix Partners, the hiring is another high-profile role after Eastman Kodak hired managing director James Mesterharm to be the camera maker's chief restructuring officer through its bankruptcy process, replacing FTI Consulting. Alix Partners also worked on the restructuring of Borders in 2011.

Kodak has secured $950 million in financing as it seeks to monetize its patents and exit bankruptcy with a focus on its digital operations.

Diamond Foods shares were halted on the news of the management change and the company's earnings restatements, announced after the market closed on Wednesday. Shares fell by over 44% to $20.70 in after-market trading.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player



Murphy of Alix Partners has previously worked as chief operating officer and chief administrative officer for NextWave Wireless and as chief financial officer and treasurer of Office Depot's China operations in projects for the firm, according to Alix Partners' web site.

He's also acted as an adviser to the creditors of Pacific Lumber and served as an interim officer for bankrupt subprime lender Accredited Home Lenders.

A Procter & Gamble (PG) spokesman said the company will consider its options on the $2.35 billion sale of its Pringles brand to Diamond Foods after hearing news of the accountancy irregularities and management change.

The Securities and Exchange Commission and Justice Department are currently also investigating Diamond Foods and its financial statements, however no findings have been released.

-- Written by Antoine Gara in New York

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs