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 / Capital Goods / Commercial & Professional Services

Catalyst Paper Chapter 15 Petition Filed

British Columbia, Canada-based Catalyst Paper and 16 affiliated Debtors filed for Chapter 15 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 12-10021. The Company, which produces printing paper, is represented by Van C. Durrer of Skadden, Arps, Slate, Meagher & Flom. The Company concurrently announced that it has applied for and received an initial court order under the Canada Business Corporations Act (CBCA) to commence a consensual restructuring process with its noteholders. The announcement asserts, “Contrary to certain media reports this is not a bankruptcy proceeding.” The proposed recapitalization has the support of the Company’s creditors, who have been subject to confidentiality agreements. More specifically (a) holders of its 11% Senior Secured Notes due 2016 holding approximately $208.1 million aggregate principal amount of outstanding Senior Secured Notes (representing more than 53.2% of the total outstanding Senior Secured Notes) and (b) holders of its 7 3/8% Senior Notes due 2014 holding approximately $54.5 million aggregate principal amount of outstanding Senior Notes (representing more than 21.7% of the total outstanding Senior Notes), have signed the agreement and agreed to vote in favor of and support the recapitalization.

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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."