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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Free Report: Turnaround Investing Mistakes

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Turnaround Investing Blog

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."