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 / Diversified Financials

Lehman Brothers Holdings Plan Support Announced

Lehman Brothers Holdings (LBHI) and its affiliated Debtors filed with the U.S. Bankruptcy a notice of overwhelming support among every class of creditors eligible to vote for the Third Amended Joint Chapter 11 Plan. In total, the Plan and related settlements are supported by 95% of creditors in number and 98% of creditors in amount of those creditors who have voted. Every single class voted to accept the Plan. The Plan is supported by the creditors’ committee; members of the ad hoc group of senior bondholders; virtually all of the proponents of the non-consolidation Chapter 11 Plan; numerous holders of notes issued by Lehman Brothers Treasury Co. B.V. who asserted substantial guarantee claims against LBHI; eight foreign administrators managing 87 foreign affiliates and most other significant creditors. In addition, LBHI said it has resolved the majority of the Plan objections and informal comments through good-faith negotiations and the addition of certain non-material amendments of the Plan. Bryan Marsal, LBHI’s chief executive officer, comments, “It has taken Herculean effort by many people to reach this point. The overwhelming support the Plan has received demonstrates that, while reaching a mutual agreement among these disparate parties was complex and challenging, it was worth the effort and was clearly the right path to take.” A confirmation hearing is scheduled to begin on December 6, 2011.

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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

 

stock market advicex

 

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."