Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Food, Beverage, & Tobacco / Food & Staples Retailing / Post-Bankruptcy Stocks

Perkins & Marie Callender's Plan Effective

Perkins & Marie Callender’s Second Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on October 31, 2011. Private investment funds managed by Wayzata Investment Partners are the majority stockholders of Perkins & Marie Callender’s Holding LLC, which is now the parent company of the Perkins & Marie Callender’s group of companies. Joseph F. Trungale, who served as chief executive officer of the Company and as a member of the board of directors from 2005-2011, will continue to serve as chief executive officer of the Company and chairman of the new board of managers. “Our financial restructuring has significantly improved the Company’s balance sheet, eliminating over $200 million in debt, and optimized its operational structure.  Perkins will emerge from this process a leaner and stronger Company,” comments Trungale. “We are now better positioned than ever before to continue as a leading force in the family-dining and casual-dining restaurant industry and to continue to provide our customers with a first rate dining experience.” In addition to Mr. Trungale, the board will include Patrick J. Halloran, Wayzata’s managing partner; Joseph M. Deignan, a Wayzata partner; James K. Beltz, a member of the Wayzata Investment team; Michael T.P. Sweeney, a shareholder and partner at Goldner Hawn Johnson & Morrison, Inc. and Karlin A. Linhardt, an industry marketing and business executive.

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Is there value in bankrupt PG&E’s stock?

In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.

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EV/EBITDA: What Is It & Why Are We Using It More?

In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple.  We thought it might be useful to describe this measure and why we like it.

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Turnaround Letter Stock Pick Named Top Performer of 2017

 

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What Last Year's Top Stock Pickers Are Buying in 2018

 

This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.

 

George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."