Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bonds / Transportation

Excel Maritime Plan Filed

Excel Maritime Carriers filed with the U.S. Bankruptcy Court a Joint Pre-Negotiated Chapter 11 Plan of Reorganization. A related Disclosure Statement was not docketed; however, the Plan does contain a restructuring support agreement and term sheet. The term sheet explains that obligations to be restructured under the Plan will include the following: (i) approximately $771.1 million outstanding aggregate principal amount under the senior secured credit facility; (ii) approximately $54.6 million outstanding aggregate principal amount under the secured loan facility agreement; (iii) approximately $150.0 million outstanding aggregate principal amount under the indenture pertaining to Excel’s 1.875% Convertible Senior Notes due October 15, 2027; (iv) Excel’s liability under the settlement agreement among Excel, Bird, certain subsidiaries of Bird and Norwegian counterparties Iron Man AS, Coal Glory and Linda Leah; (v) the ISDA master agreement between Eurobank EFG Private Bank Luxembourg and Excel with an estimated mark-to-market liability amount of $2.3 million; (vi) ISDA master agreement between Nomura International and Excel with an estimated mark-to-market liability amount of $1.4 million  and (vii) ISDA master agreement between Marfin Popular Bank Public Co., Greek Branch, and Excel with an estimated mark-to-market liability amount of $4.1 million. The term sheet further explains, “On the Effective Date of the Plan, the Company shall receive $30 million cash in total funding from two sources. Holdco shall contribute $10 million cash from the proceeds of the Note…and $20 million shall be released to the Company in connection with the Escrow Dispute Resolution.”

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Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. 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.

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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."