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 / Banks

First Regional Bancorp Plan Confirmed

The U.S. Bankruptcy Court issued an order confirming First Regional Bancorp’s First Amended Chapter 11 Liquidating Plan, dated March 18, 2013. At the May 23, 2013 hearing to consider Plan confirmation, “…the Court required Debtor and Wilmington Trust Company to confer and agree upon the language of the confirmation order and related modifications to the FAP. Debtor and Wilmington Trust have agreed upon the form and language of the confirmation Order, Findings of Fact and Conclusions of Law, Second Amended Chapter 11 Liquidating Plan (the ‘Plan’), and Liquidating Trust Agreement that are attached as Exhibits B, C, D, and E to the Motion of Wilmington Trust Company Concerning Form of Plan and Liquidating Trust Agreement. D.E. 251.” In its confirmation order, the Court explains that it has reviewed the briefs submitted regarding proposed revisions of the Debtor and VM Financial Restructuring Consulting Company and finds that the proposed revisions constitute Plan modifications that can only be approved in accordance with 11 U.S.C. Section 1127(b). The Court, therefore, denies Debtor’s request to make these revisions but approves and confirms the Plan and liquidating trust agreement. As previously reported, “The Plan provides for the disposition of all assets of the Debtor’s Estate through the establishment of a Liquidating Trust for the benefit of the Holders of Allowed Claims consistent with the priority provisions of the Bankruptcy Code and the Plan. Remaining assets, to the extent not converted to cash or other proceeds as of the Effective Date, will be sold or otherwise disposed of by the Liquidating Trustee after the Effective Date, with all net cash proceeds to be distributed to Holders of Allowed Claims, as provided for in the Plan.” The Plan also provides for the cancellation of all equity interests in the Company without any distribution or other payment. This bank holding company filed for Chapter 11 protection on June 19, 2012, listing $2.5 billion in pre-petition assets.

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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Turnaround Investing Philosophy: 32 Years Later, Some Things Never Change

Recently I was asked how my investing perspective changed over the 32 years of publishing The Turnaround Letter. It's a fascinating question because change is constant, and often beneficial (although that's not a given) in the business world. If change is the norm, can investing principles stay constant? I firmly believe that they can. 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."