Bankruptcy/Chapter 11 / Bonds
TOUSA Plan Confirmation Reported
Kirkland & Ellis, as attorney for TOUSA, announced that the U.S. Bankruptcy Court confirmed TOUSA’s Amended Joint Plan of Liquidation, although a formal confirmation order has not yet been docketed. Judge John K. Olsen commented, “People negotiated this plan painfully. This is an integrated document.” Under the Plan, first-lien revolver claims of $16.6 million would see a 50% recovery, and first-lien loan claims of $206.2 million receive a 56% recovery. Second-lien term loan claims of $320.4 million would see a 4% recovery, and second-lien note claims of $573.5 million are eligible for a 58% recovery. General unsecured claims, which total $106.7 million, would see at least a 5% recovery. This home builder filed for Chapter 11 protection in January 2008, listing $2.8 billion in total assets.
Read more Bankruptcy News
Identify & Profit from Distressed Investing
Turnaround Investing Blog
In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.
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.
Turnaround Letter Stock Pick Named Top Performer of 2017
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."
Copyright © All Rights Reserved.
Design, CMS, Hosting & Web Development :: ePublishing.