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

Lone Pine Resources Chapter 15 Petition Filed

Alberta, Canada-based Lone Pine Resources filed for Chapter 15 bankruptcy protection with the U.S. Bankruptcy Court in the District of Delaware, case number 13-12487. The Company, which engages in the exploration and development of natural gas and light oil properties in Canada, is represented by Mark D. Collins of Richards, Layton & Finger. The Company announced that it has reached agreement with holders of approximately 75% of the outstanding 10.375% Senior Notes due 2017 issued byLone Pine Resources Canada on a restructuring plan that, if successfully implemented, will significantly reduce the Company’s debt obligations and materially improve the Company’s overall capitalization and liquidity. Concurrent with the U.S. Chapter 15 proceedings, the Company has also commenced proceedings in the Court of Queen’s Bench of Alberta under the Companies’ Creditors Arrangement Act to implement the restructuring. Lone Pine, LPR Canada and all other subsidiaries of the Company are parties to the CCAA and Chapter 15 proceedings. Tim Granger, president and chief executive officer, comments, “The proposed restructuring is designed to significantly reduce the Company’s long-term debt and improve its liquidity, which will allow Lone Pine to resume investment in its attractive asset base, while at the same time allowing the Company to retain its relationships with its current employees, industry partners and suppliers.” Specifically, the restructuring provides for cancellation of all outstanding shares of Lone Pine common stock, conversion of all senior notes into new common equity and a new equity investment of $100 million by holders of the senior notes through a private offering to eligible noteholders of convertible preferred shares. The preferred shares to be issued under the share offering will be convertible, in aggregate, into such number of common shares as is equal to the 75% of the common shares outstanding on an “as converted” basis on completion of the restructuring. It is a condition to the restructuring that Lone Pine obtain a new secured credit facility, and the Company is engaged in active lender discussions for this purpose.

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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."