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 / Post-Bankruptcy Stocks / Transportation

TBS International Chapter 11 Petition, Plan Filed

TBS International and more than 70 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 12-22224. The Company, which provides ocean transportation services and cargo logistics serving a diverse client base of industrial shippers, is represented by Michael A. Rosenthal of Gibson, Dunn & Crutcher. Concurrent with the petition, the Company also filed a Joint Prepackaged Plan of Reorganization and related Disclosure Statement, which will restructure the Company’s secured debt and pay in full allowed claims of unsecured creditors. TBS International states that the Plan will “align the Company’s operations and capital structure with the current and expected demand in the global markets.” Pursuant to the Plan, ownership of the Company’s operating subsidiaries will be transferred to a newly-formed entity that will be owned principally by the lenders. Old equity holders will receive no distributions, and the Company will cease to be a reporting public company. The Company has, subject to Court approval, obtained debtor-in-possession financing of $42.8 million to fund operations during the Chapter 11 cases. This financing is provided entirely by the Company’s existing lenders, including Bank of America, DVB Bank, Toronto Dominion Bank and Credit Suisse. Under the Plan, the D.I.P. financing claims and pre-petition secured debt are to be restructured so as to provide new liquidity, extended maturity dates and other terms sufficient to permit the new entity’s successful emergence from Chapter 11 and future viability. “We are very pleased that our banks are supportive of the steps we have taken to improve our balance sheet and, through it, the long-term health of our Company,” said Joseph E. Royce, chairman, chief executive officer and president. “As a result of the restructuring, we should be positioned to be a financially sound competitor in our global markets. We have taken steps to diminish the impact of this process on our vendors, customers and employees, and we intend to move forward as expeditiously as possible to complete the restructuring. More importantly, I want to emphasize that this agreement ensures that our vessels will not be arrested and cargo will get to its destination as scheduled.” TBS Shipping International emerged from a previous Chapter 11 filing in February 2001.

Read more Bankruptcy News

More on TBS International's bankruptcy

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

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.

Read More.

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.

Read More.

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."