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 / Healthcare Equipment & Services

IntraOp Medical Chapter 11 Petition Filed

IntraOp Medical filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Northern District of California, case number 13-53791. The Company, which provides technology solutions for cancer treatment, is represented by Robert L. Eisenbach, III of Cooley. The Company also announced that it has reached an agreement through which an entity backed by a group of institutional investors will acquire substantially all of its assets in a transaction valued at approximately $15 million, plus the assumption of certain liabilities. The purchase agreement comprises the initial stalking horse bid for a Court-supervised auction process, under Section 363 of the Bankruptcy Code. “IntraOp Medical had a strong fiscal year in 2012, with 13 machines shipped and positive earnings over $1 million before taxes and depreciation, but was unable to produce sufficient free cash flow to service its existing debt,” said John Powers, C.E.O. of IntraOp Medical. “In addition, the company did not have the cash resources to counteract a slowdown in 2013 driven by the decline in the European economy and uncertainty over Healthcare reform in the United States.” In addition to the stalking horse bid, the bidder has committed to provide debtor in possession financing to provide sufficient liquidity for ongoing operations through the process.

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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."