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

Green Field Energy Services Chapter 11 Petition Filed

Green Field Energy Services and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 13-12783. The Company, which provides hydraulic fracturing and well services, is represented by Josef S. Athanas of Latham & Watkins and Michael R. Nestor of Young Conaway Stargatt & Taylor. According to documents filed with the Court, “Due to the competitive advantages of the turbine-powered hydraulic fracturing technology utilized by the Debtors, the Debtors greatly expanded their hydraulic fracturing operations and capabilities….Unfortunately, market conditions changed for the worse shortly after the Debtors made this shift in focus. As a result the Debtors’ customer base became more and more concentrated….This severely reduced the revenues generated by the Debtors’ business and has resulted in a need for reorganization of the Debtors’ debt structure.” Green Field Energy Services explains that the Company engaged in extensive pre-petition restructuring negotiations with key constituents, including Shell, certain holders of its 2016 Senior Secured Notes and the indenture trustee. The Company further states, “The Debtors and their key constituents will continue those discussions and hope to negotiate the terms of a comprehensive restructuring that maximizes the value of the Debtors’ estates for the benefit of their creditors following the Petition Date.”

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Turnaround Investing Blog

IBM: Not Yet Time to Swing at this Pitch

IBM’s stock underperformance since IBM’s current CEO took the helm in 2012 has been stark, with the shares declining 23% while the S&P500 Index has more than doubled. One big problem: revenue growth rate is zero, at best. Without revenue growth, what’s left to entice investors? The real driver of value at IBM – free cash flow that is used to repurchase shares. Can IBM borrow its way to shareholder prosperity as its cash flows shrink? What to do with IBM shares? Wait for a better pitch in the form of a catalyst or much lower valuation. Read More.

Comparing Stocks Vs. Bonds

While the common stock of a turnaround candidate usually has the greatest upside potential, other classes of securities, such as bonds or preferred stock, may offer attractive profit possibilities with less risk. Many turnaround companies have only one class of securities available to investors but where there are different classes to choose from, it can pay to do a little extra analysis of the various options.

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Turnaround Letter Stock Pick Named Top Performer of 2017

 

stock market advicex

 

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."