Corporate Restructuring

It was founded by the family that built the Happiest Place on Earth. But for many executives on the opposite side of the boardroom, Shamrock Holdings Inc. has been more like a house of horrors. A few years ago, the Burbank investment company owned by Roy E. Disney led a revolt to oust Walt Disney Co.'s then-chief executive, Michael Eisner. It not only was intensely bitter but also thrust the little-known firm into the limelight. Now it's at it again, this time agitating for change at one of the nation's largest cement makers.

Chrysler has put bankruptcy behind it, but turmoil at the company continues. The troubled automaker on Monday replaced two top executives less than four months after promoting them and at the same time announced plans to split its Dodge brand in two, creating an all-truck Ram division. Although Chrysler said the departures of Peter Fong, formerly head of the Chrysler brand, and Michael Accavitti, who led Dodge, were voluntary, the moves raise questions about the focus of the company's business plan as it tries to rebuild.

Just a month after being named chairman of Walt Disney Studios, Rich Ross has carried out a broad restructuring of marketing, distribution and operations to reflect a focus on cultivating entertainment franchises -- and finding new ways to reach audiences through technology. The moves underscore a new set of priorities for the studio driven by Ross and Walt Disney Co. Chief Executive Bob Iger, who has taken a renewed interest in the film business since ousting former Disney Studios Chairman Dick Cook in September.

Hines Horticulture Inc., a California operator of commercial nurseries, won court approval of a reorganization plan to pay creditors from a sale to Black Diamond Capital Management. U.S. Bankruptcy Judge Kevin Carey approved the plan in Wilmington, Del., saying that "finality of this case is in the best interest of all parties." Black Diamond won the right to buy Hines' assets after no other competing bids were submitted and a scheduled auction was canceled. Black Diamond offered about $58 million in cash and agreed to take on as much as $45.9 million in liabilities.

Smithfield Foods Inc. said it planned to cut 1,800 jobs and close six factories as part of a restructuring that comes amid an overall slump in the meat industry. The company plans to combine seven of its independent operating companies into three main units and close plants in six cities, including one in its hometown of Smithfield, Va., by December. The meat industry is slumping as companies such as Smithfield recover from volatile energy and commodity costs that reached record highs over the summer.

Tribune Co. and its creditors are in the early stages of negotiating a plan of reorganization in U.S. Bankruptcy Court that sources said probably would transfer control of the troubled media conglomerate from Chicago billionaire Sam Zell to a group of large banks and investors that holds $8.6 billion in senior debt. The plan is still taking shape, the sources said, and much could change as negotiations continue. But the general contours of a new capital structure are coming into focus, and the plan centers on a debt-for-equity swap that probably would give the senior lenders a large majority ownership stake in the reorganized Chicago media firm.

A high-level executive reshuffling at the Walt Disney Co. on Thursday will give Chief Executive Robert A. Iger a deeper bench from which to choose a No. 2. The restructuring came in advance of the company's fourth-quarter earnings announcement. Disney reported an 18% bump in income, fueled by gains in the television group that helped offset a loss at the film studio and softness in the theme park business. As part of the management changes, Chief Financial Officer Tom Staggs will trade jobs at the end of the year with Parks and Resorts Chairman Jay Rasulo.

Allergan Inc., the maker of Botox injections to smooth wrinkles, said it would consolidate its European research and development operations to save as much as $9 million a year. Operations at the plants to be closed will be moved to Britain, Ireland and the U.S., Irvine-based Allergan said. The closings, which also affect some sales operations, will cost the company about $50 million to $60 million through the second quarter of 2006. Shares of Allergan rose $1.24, or 1.6%, to $81.02 on the NYSE.

A federal judge on Friday night enjoined Lloyd's of London from imposing its $4.7-billion rescue plan on U.S. investors and ordered a trial on the investors' charges that critical financial information has been withheld about the restructuring of the storied insurance market. But U.S. District Judge Robert E. Payne did not block U.S. investors from accepting the deal if they so choose.

A new study finds that corporate America is planning major changes in employee compensation in the next few years. What it comes down to is this: If you're highly skilled, you'll benefit nicely. But if you're not and cannot contribute to your employer's goals, you'll be paid less.