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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IBM: Not Yet Time to Swing at this Pitch

IBM’s stock underperformance since IBM’s current CEO took the helm in 2012 has been stark, with the shares declining 23% while the S&P500 Index has more than doubled. One big problem: revenue growth rate is zero, at best. Without revenue growth, what’s left to entice investors? The real driver of value at IBM – free cash flow that is used to repurchase shares. Can IBM borrow its way to shareholder prosperity as its cash flows shrink? What to do with IBM shares? Wait for a better pitch in the form of a catalyst or much lower valuation. Read More.

Comparing Stocks Vs. Bonds

While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.

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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."