Bankruptcy News

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

Post-Bankruptcy Stocks / Transportation

Excel Maritime Carriers Chapter 11 Petition Filed

Excel Maritime Carriers and more than 40 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 13-23060. The Company, which owns and operates of dry bulk carriers and provides worldwide seaborne transportation services for dry bulk cargoes, is represented by Jay M. Goffman of Skadden, Arps, Slate, Meagher & Flom. The Company concurrently announced that it has entered into an agreement with its senior secure lenders on the terms of a financial restructuring, the terms of which are substantially similar to the previously-announced agreement in principle the Company reached with the steering committee of its senior lenders. This agreement provides the Company with up to $80 million of additional liquidity, significantly strengthens its financial profile and positions Excel Maritime for future growth and success. Gabriel Panayotides, chairman of the board, explains, “We are confident that we are taking the right actions and we believe that the agreement that we signed today with our senior lenders and the court-supervised process provide for a clear and expedited path to strengthen our financial profile and position Excel Maritime for future growth and success.” Under the terms of the agreement Excel Maritime will receive the following: (1) up to $50 million of capital as a result of an agreement between the senior lenders and an entity affiliated with the family of Mr. Panayotides (under the terms of that agreement, this entity will receive a majority of the equity in Excel Maritime) and (2) the release of an additional $30 million of currently restricted cash. According to documents filed with the Court, “Reduced cash flows and liquidity, combined with the Debtors’ overleveraged capital structure, have left the Debtors struggling to service their debt. As a result, the Debtors have not been able to comply with certain covenants in their loan agreements. Industry forecasts remain bleak, with low charter rates expected to persist, and vessel values expected to remain under severe pressure.”

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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."