RELEASE: Mike McFadden can’t explain why his company scrubbed Smurfit-Stone deal
ST. PAUL [10/26/14] — SPEECHLESS: Investment banker Mike McFadden could not explain at today’s WCCO-TV debate why his company, Lazard Middle Market, suddenly scrubbed all mentions of its work on the Smurfit-Stone Container Corporation restructuring deal featured in the Franken campaign’s new ad, “Wasteland,” which details the devastation that occurred as a result of the deal.
Debate moderator Esme Murphy repeatedly pressed McFadden on how he could claim his company was not involved in a restructuring deal that shuttered a Montana mill, laying off all 417 workers, when the deal was explicitly featured on the Lazard Middle Market website on his watch. McFadden could not answer the question — WATCH THE VIDEO HERE:
ESME MURPHY: Let’s talk about this latest ad Mr. McFadden, because you are saying it is absolutely false that your company negotiated a deal that resulted in a mine closing in Missoula, Montana, that resulted in 400 plus layoffs. Did your company, it was on your company’s website that they did that deal?
MIKE MCFADDEN: So the company that I run, which is called Lizard Middle Market, did not do that deal, was not involved in that transaction.
ESME MURPHY: Why was it on the website? I’ve got the website right here. It says Lazard Middle Market and had that deal right underneath it.
AL FRANKEN: 400 jobs lost. They did the restructuring. They bragged about doing the restructuring for the whole length of this campaign until we ran the ad. This has been an issue out there. It was in Politico about a year and a half ago. They kept it on, they knew his company did the restructuring on this.
In 2009 and 2010, McFadden’s company advised the restructuring of Smurfit-Stone. During the restructuring, Smurfit-Stone shuttered a Montana mill, laying off all 417 workers. McFadden’s company walked away with a $9 million fee from the deal.
On Friday, McFadden tried and failed to distance himself from the deal, claiming Lazard Middle Market was not part of the restructuring deal even though the deal was prominently featured as a transaction on Lazard Middle Market’s website.