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

Anchor BanCorp Wisconsin Disclosure Statement Approved, Plan Confirmed

The U.S. Bankruptcy Court approved Anchor BanCorp Wisconsin's Disclosure Statement and concurrently confirmed its Chapter 11 Plan of Reorganization. According to the documents filed with the Court, "Pursuant to the Plan, the Company will discharge its senior secured credit facility with approximately $183 million in outstanding obligations for a cash payment of $49 million. In addition, the Company's TARP preferred securities with an aggregate liquidation preference and deferred dividends of approximately $139 million will be cancelled in exchange for new common equity that will represent approximately 3.3% of the pro forma equity of the reorganized Company. New equity investors will represent in the aggregate approximately 96.7% of the pro forma equity of the reorganized Company." As of July 31, 2013, the Company had 21,247,225 shares of common stock issued and outstanding, all of which will be cancelled for no consideration pursuant to the Plan of Reorganization. The Plan further provides that the Company expects to (i) convert from a Wisconsin corporation to a Delaware corporation in accordance with Section 265 of the Delaware General Corporation Law and (ii) file a Certificate of Incorporation with the Secretary of State of the State of Delaware to, among other things, declassify the board of directors, increase the number of authorized shares of common stock and adopt certain restrictions on acquisitions and dispositions of securities. "It is important for our customers, employees and the community to remember that AnchorBank, which operates separately from the Holding Company, is not a part of the Chapter 11 process. The Chapter 11 filing includes only the Holding Company and does not affect AnchorBank, its people, or its services," comments Chris Bauer, AnchorBank's president & C.E.O. "It continues to be business as usual at the Bank, and we are thankful for the opportunity to continue serving our customers." This bank holding company filed for Chapter 11 protection on August 12, 2013, listing $2.4 billion in pre-petition assets.

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Is there value in bankrupt PG&E’s stock?

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.

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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."