Bankruptcy News

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

Monitor Company Group Limited Partnership Conversion Approved

The U.S. Bankruptcy Court approved Monitor Company Group Limited Partnership’s motion to convert its Chapter 11 reorganization case to liquidation under Chapter 7. On January 11, 2013, the Court approved the sale of substantially all of the Debtors’ assets to Deloitte Consulting and DSCH Limited, and the sale closed on January 11, 2013. As previously reported, “Upon the Sale, the Debtors ceased business operations. Since the closing of the Sale, the Debtors’ principal activity has been to effectively administer the TSA. Once the TSA expires, the Debtors will have no further tasks to perform that could not be performed by a chapter 7 trustee. The Parties have conferred and assert that (i) there is no ‘reasonable likelihood of rehabilitation’ for the Debtors, (ii) there is no realistic prospect of confirming a chapter 11 plan, and (iii) remaining obligations under the Deloitte Asset Purchase Agreement can be completed by the chapter 7 trustee after conversion of these cases. In addition, in the absence of conversion, the administrative burdens of the chapter 11 cases would cause diminution in the value of the estates’ remaining assets. Therefore, the conversion of the Debtors’ chapter 11 cases to cases under chapter 7 of the Bankruptcy Code is necessary and appropriate.” This global consulting firm filed for Chapter 11 protection on November 7, 2012, listing $227 million in pre-petition assets.

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Turnaround Investing Blog

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."