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 / Bonds / Pharmaceuticals, Biotechnology & Life Sciences

K-V Pharmaceutical Plan Effective

K-V Pharmaceutical (DrugTech) announced that its Sixth Amended Joint Plan of Reorganization has become effective, and the Company has emerged from Chapter 11 bankruptcy protection with significantly reduced debt and a $375 million recapitalization. Pursuant to the Plan, investors led by Capital Ventures International, Greywolf Capital, Kingdon Capital and Deutsche Bank (together with Silver Point Finance) and/or affiliates of each of the foregoing have provided the majority of funding of the Company’s new $100 million credit facility and $275 million rights offering and direct purchase of new common shares. “As KV emerges from chapter 11 today, we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth,” said Greg Divis, K-V Pharmaceutical’s C.E.O. The Company’s existing senior secured notes will be paid in cash in full in accordance with the terms of the Plan and general unsecured creditors will receive a pro rata share of $10.25 million. KV Pharmaceutical’s existing convertible subordinated noteholders will receive 7% of its new common shares plus any shares purchased through the rights offering or direct purchase of shares. Under the Plan, all existing preferred and common stock has been cancelled. The Court confirmed the Plan on August 29, 2013. This pharmaceutical marketing company filed for Chapter 11 protection on August 4, 2012, listing $253 million 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."