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

FriendFinder Networks Plan Filed

FriendFinder Networks filed with the U.S. Bankruptcy Court a Joint Chapter 11 Bankruptcy Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “Prior to the Petition Date, the Debtors engaged in extensive negotiations with the Consenting First Lien Noteholders, the Consenting Second Lien Noteholders, and the Holders of the Cash Pay Second Lien Notes regarding the potential terms of a consensual restructuring of the Debtors’ capital structure. As a result of those negotiations, the Debtors determined, in consultation with their legal and financial advisors, that it was in the best interest of their estates to pursue Confirmation of the Plan, which implements a recapitalization transaction that has the support of the Consenting First Lien Noteholders (representing approximately 80% in principal amount of the First Lien Notes) and; Consenting Second Lien Noteholders (representing approximately 78% of the Second Lien Non-Cash Pay Notes) under the terms of the Transaction Support Agreement entered into prior to the Petition Date. The Plan also has the support of 100% of the Holders of the Cash Pay Second Lien Notes pursuant to the Bell/Staton Settlement Agreement entered into prior to the Petition Date.” $234 million in first lien noteholder claims and $331 million in second lien noteholder claims are allowed under the Plan. The Plan further contemplates a recapitalization of the Debtors that will result in first lien noteholder claimants receiving, among other things, new first lien notes and second lien noteholder claimants receiving, among other things, 100% of the Company’s equity. FriendFinder Networks explains, “The Debtors believe that the Plan provides the best means currently available for the Debtors to restructure their balance sheet and emerge promptly from chapter 11.”

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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."