This Day On The Street
Continue to site
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

Diamond Foods Hires Kodak's Adviser

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 - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DMND $37.56 0.97%
PG $80.12 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs