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 / Energy

Xtreme Green Products Chapter 11 Petition Filed

Xtreme Green Products filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Nevada, case number 13-17266. The Company, which manufactures specialty electric vehicles, is represented by Lenar E. Schwartzer of Schwartzer & McPherson Law Firm. The Company filed a motion seeking Court approval of $2 million ($650,000 in the interim) in debtor-in-possession financing from proposed lender The Georgiou Family Trust. The financing will be used to fund critical operating expenses and pay critical vendors and repay a pre-petition secured loan from the lender in the principal amount of $150,000. The Company explains, “If the Debtor is unable to obtain post-petition financing, it will be unable to carry on the operation of its business, including fulfilling existing orders, and thus be unable to reorganize. Conversely, by obtaining post-petition financing, Debtor will increase the value of its estate and of the collateral for its secured debt to Lender.” The U.S. Trustee assigned to the case scheduled a September 26, 2013 341-Meeting of Creditors.

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Free Report: Turnaround Investing Mistakes

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."