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 / Post-Bankruptcy Stocks / Real Estate

155 East Tropicana Plan Filed

155 East Tropicana filed with the U.S. Bankruptcy Court a Joint Plan of Reorganization and related Disclosure Statement. The Plan contemplates the sale of all the Debtors’ assets. According to the Disclosure Statement, “On the Effective Date of the Plan, Finance Corp. shall be dissolved and all Finance Corp.’s Equity Interests shall be cancelled and extinguished. All executory contracts and leases not assumed and assigned will be rejected. The Excluded Assets will continue to be owned by Reorganized Debtor subject to the terms of distribution set forth in the Plan. The Reorganized Debtor shall continue to exist after the Effective Date until all of the actions required of Reorganized Debtor under the Plan have been completed, after which Reorganized Debtor shall be dissolved and all Company Equity Interests shall be cancelled and extinguished. The existing operating agreement and other organizational documents of the Reorganized Debtor will continue in effect following the Effective Date, except to the extent that such organization and operating agreements are amended in conformance with the Plan, or by proper corporate actions implemented after the Effective Date.” In connection to the Plan, the Debtors filed a motion with the Court for approval of the sale of the Debtors’ assets, procedures related to the sale and requesting a January 20, 2012 sales procedure hearing.

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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."