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 / Energy

Patriot Coal Plan Filed

Patriot Coal filed with the U.S. Bankruptcy Court a Second Amended Joint Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “The Plan provides for a reorganization of the Debtors and the resolution of all outstanding Claims against and Interests in the Debtors. The Plan contemplates two rights offerings to raise $250 million of capital through the issuance of (i) senior secured second lien notes and (ii) warrants exercisable for New Class A Common Stock. The Plan will provide each of the holders of Allowed Senior Notes Claims, Allowed Convertible Notes Claims and Allowed General Unsecured Claims, in each case that is a Certified Eligible Holder, an opportunity to participate in the Rights Offerings. In connection with the Rights Offerings, on October 9, 2013, the Debtors entered into the Rights Offerings Term Sheet, pursuant to which the Debtors and the Backstop Parties agreed to take all actions reasonably necessary to negotiate, document and consummate the transactions contemplated by the Rights Offerings Term Sheet, which include the Backstop Parties’ commitment to purchase the Unsubscribed Rights in accordance with the Backstop Rights Purchase Agreement….Based upon the Debtors’ analyses and discussions with the Creditors’ Committee, the Plan provides that: Intercompany Claims and Intercompany Interests will not receive any distribution under the Plan;holders of Allowed General Unsecured Claims and Allowed Convenience Class Claims against the Group 2 Debtors should be entitled to a recovery enhancement of 2 times the recoveries of holders of Allowed General Unsecured Claims and Allowed Convenience Class Claims against the Group 1 Debtors; holders of Allowed General Unsecured Claims and Allowed Convenience Class Claims against the Group 3 Debtors should be entitled to a recovery enhancement of 3 times the recoveries of holders of Allowed General Unsecured Claims and Allowed Convenience Class Claims against the Group 1 Debtors; and  holders of Allowed Senior Notes Claims that are receiving Convenience Class Consideration should be entitled to a recovery enhancement of 5 times the recoveries of holders of Allowed General Unsecured Claims and Allowed Convenience Claims against Group 1 Debtors.”

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Books we Recommend for the Holidays

Looking for a stocking-stuffer for the investor or businessperson in your life, or perhaps for yourself? Don’t have a lot of time to stroll through a brick-n-mortar bookstore or wonder which books among Amazon’s endless inventory are actually worth buying? Our list, assembled by George Putnam and Bruce Kaser, includes some fascinating new titles as well as several timeless classics about successful investing and leadership. All are valuable reads which any recipient will be thrilled to dive into. 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."