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 / Pharmaceuticals, Biotechnology & Life Sciences

Savient Pharmaceuticals Chapter 11 Petition Filed

Savient Pharmaceuticals and one affiliated Debtor filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 13-12680. The Company, which offers a specialty biopharmaceutical product for the treatment of chronic gout, is represented by Anthony W. Clark of Skadden, Arps, Slate, Meagher & Flom. The Company concurrently filed a motion seeking Court authorization to pursue a sale process, under Section 363 sale of the U.S. Bankruptcy Code. To this end, Savient Pharmaceuticals has entered into (and submitted to the Court) an acquisition agreement with stalking horse bidder Sloan Holdings, a subsidiary of US WorldMeds. Under the proposed agreement, Sloan Holdings will acquire substantially all Company assets for approximately $55 million. The sale agreement contemplates a Court-supervised auction process designed to achieve the highest or best offer. “The Board and management team have conducted a rigorous assessment of all of our strategic options and believe that this process represents the best possible solution for Savient, taking into account our financial and operational issues and helping to unlock the value of KRYSTEXXA,” comments Stephen O. Jaeger, chairman of the board of Savient Pharmaceuticals. “We are committed to an outcome that maximizes value and allows KRYSTEXXA to remain commercially available in the U.S. to all of the patients who have come to rely on this life-changing therapy. Further, we are thankful to our dedicated employees who will continue to work vigorously to develop and provide KRYSTEXXA throughout this process.”

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Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. 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."