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 / Bonds

TOUSA Plan Filed, Supporting Memorandum Filed

TOUSA and its official committee of unsecured creditors filed with the U.S. Bankruptcy Court a revised Amended Joint Plan of Liquidation and related Exhibits, including an amendment to the inter-creditor settlement agreement and revised schedule of term loan lender disgorgement payments. A related Disclosure Statement was not filed. The Company and its official creditors’ committee also filed a memorandum in support of Plan confirmation, asserting, “Three years of mediation and several months of intense negotiations regarding documentation of the grand bargain yielded the Joint Plan. The Joint Plan, a carefully crafted and extremely fragile agreement - with each provision closely intertwined and dependent on the whole - is supported by the Debtors, the Committee, the First Lien Revolver Agent, the First Lien Revolver Sub-Agent, the First Lien Term Loan Agent, the Second Lien Term Loan Agent, the First Lien Revolver Lenders, the First Lien Term Loan Lenders, the Second Lien Term Loan Lenders, the Settling Transeastern Lenders, MatlinPatterson, Aurelius, Monarch, the Directors and Officers and the Settling D&O Insurers. It is no surprise that the Debtors’ creditors voted overwhelmingly in favor of the Joint Plan. And…, two of the four objections standing in the way of confirmation have been resolved and the two remaining objections should be overruled….After more than five years in chapter 11, with the support of each of the Debtors’major stakeholders, it is time to bring an end to these cases. The Joint Plan should be confirmed.”

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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."