He got out when the getting was good, the relatives he feuded with didn’t, but Tim Hoiles says he takes no delight in the way things turned out at the OC Register’s holding company, Irvine-based Freedom Communications: “I’m not gloating. I’m the last person with the name Hoiles. It was not easy for me as an individual to sell my portion of the newspaper business.” But lucky for him he did. In the 2004 recapitalization that was engineered to get rid of him, Tim swapped his 8.6% stake for $142 million. Six years later, that’s closer to what 100% of Freedom’s equity is worth. The relatives who kept control by taking on heavy debt and private equity have lost it all—the Freedom that has emerged from bankruptcy belongs to three New York-based investment firms—Angelo, Gordon; Alden Global Capital; and Luxor Capital Group—and a lending consortium led by JPMorgan Chase. Tim bristles at suggestions that his payout or clashes among heirs destroyed the dynasty begun by libertarian crusader R.C. Hoiles; he contends the problem was more fundamental: “There were a lot of business decisions that were made by management and the board that were absolutely atrocious.” Tim, a Colorado Springs, Colo., businessman, declines to elaborate, saying he doesn’t want to give any fodder to San Francisco trial lawyer Joseph M. Alioto. They’re in a drawn-out legal battle over a $21 million contingent fee that Alioto claims he is owed by Hoiles for advising on the 2004 deal …
The death of 46-year-old Geoff Chao, who collapsed within yards of finishing the half-portion of the May 2 OC Marathon, has stunned those who knew the spirited director of events at the Hilton Orange County/Costa Mesa. At the OCBJ we’ve grieved with Geoff’s mom, our dining writer, Fifi Chao. “The outpouring of public support has just been amazing,” Fifi says. A fund has been set up for Geoff’s widow, Heather, and their kids, Ava, Max and Eli; info at www.memoriesofgeoff.com …
At UCI: Dean Erwin Chemerinsky maintains that next spring’s schedule “is not set yet,” but others tell the Insider that controversial former trial lawyer Bill Lerach will not be teaching at the law school. UCI dedicates its $80 million stem cell research building, Sue and Bill Gross Hall, on Friday. Former Goodwill Industries International CEO George Kessinger receives the Merage Business School’s Distinguished Alumnus award Thursday at the Fairmont Newport Beach …
EE RR emcees the Association for Corporate Growth’s awards dinner Thursday at the Island Hotel Newport Beach. Info at www.acgoc.org … In town: Former FDA chief David Kessler, to discuss his new obesity book Friday and Saturday at the Newport Beach Central Library …
OCers on Super Lawyers’ list of top 100 SoCal lawyers: Wylie Aitken, Scott Ferrell, Dan Hodes, Tom Malcolm, Michelle Reinglass, Mark Robinson, Richard Sherman, Edward Susolik. At least two (Aitken and Robinson) are suing Toyota (see story, page 1).
