Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bonds / Post-Bankruptcy Stocks

AMR Plan Confirmed

The U.S. Bankruptcy Court issued a formal order confirming AMR’s Fourth Amended Joint Chapter 11 Plan, filed September 23, 2013. As previously reported, “No creditor of any of the Debtors will be prejudiced by the substantive consolidation of the AMR Debtors, the substantive consolidation of the American Debtors, and the substantive consolidation of the Eagle Debtors, which will benefit all creditors of the Debtors….Pursuant to Section 6.2(a) of the Plan, subject to and in connection with the occurrence of the Effective Date, AMR and US Airways shall take all such actions as may be necessary or appropriate to effect the American Airlines Merger on the terms and subject to the conditions set forth in the Merger Agreement.” The Bankruptcy Court approved this merger agreement in March 2013 (with a related order docketed on April 11, 2013), and the U.S. District Court is scheduled to rule on the Department of Justice’s civil antitrust lawsuit against the merger on November 25, 2013. According to documents filed with the SEC, the ultimate parent company resulting from the merger (“AAG”) is expected to have approximately 1.75 billion shares of common stock and 200 million shares of preferred stock authorized on the Plan’s effective date. All existing AMR shares will be cancelled under the Plan, and, on the effective date, the Company will designate a new series of AAG convertible preferred stock from its authorized preferred stock. This passenger airliner filed for Chapter 11 protection on November 29, 2011, listing $25 billion in pre-petition assets.

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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."