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 / Energy / Post-Bankruptcy Stocks

Ener1 Chapter 11 Petition, Plan Filed

Ener1 filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, case number 12-10299. The Company, which is a holding company for entities engaged in the research, development and production of rechargeable batteries and battery packs, is represented by Michael J. Venditto of Reed Smith. Concurrent with its petition, the Company also filed with the Court a Joint Prepackaged Plan of Reorganization and related Disclosure Statement. The Company explains that its plan has been unanimously accepted by all impaired creditors. According to the Company, “The keystone of the Plan is the infusion of up to $81 million of new capital, which will reorganize the existing capital structure and support the continued operation of the Debtor’s subsidiaries. Aside from the restructured long-term debt held by the parties that have voted to accept the Plan, the claims of general unsecured creditors are unimpaired and will be paid by the Debtor in full pursuant to the Plan. All of the Debtor’s existing common stock will be cancelled and new equity will be issued to the provider of the postpetition and exit funding and to the long-term debt holders.”

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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."