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

Physiotherapy Associates Holdings Chapter 11 Petition, Plan Filed

Physiotherapy Associates Holdings and 50 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 13-12965. The Company, which offers general orthopedics, spinal care, orthotics and prosthetic services and neurological rehabilitation, is represented by Domenic E. Pacitti of Klehr Harrison Harvey Branzburg. In a corporate release, the Company explains, “The financial restructuring is expected to have no impact on the Company’s operations or its ability to continue providing high-quality service and patient care and was unanimously supported by its senior secured lenders and bondholders that submitted votes on the Company’s prepackaged plan.” Martin McGahan, chief executive officer of Physiotherapy Associates, comments, “This is an important step forward in our efforts to align our capital structure with the strength of our operations and current financial performance. The Company is profitable and has positive cash flow - this process relates solely to the issue of restructuring the balance sheet….We look forward to using the restructuring process to better position the Company for long-term success and profitability.” In advance of the Chapter 11 filing, the Company has received approval of the financial restructuring plan from 100% of its senior secured lenders and over 99.7% of its bondholders. The Company concurrently filed its Joint Prepackaged Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "The Debtors are pleased that after extensive, good-faith negotiations with their Bridge Loan Lenders, the Ad Hoc Committee of Senior Noteholders and certain of their Shareholders, they have achieved agreement on a consensual restructuring transaction to be implemented swiftly through a prepackaged chapter 11 plan of reorganization that will achieve the Debtors' restructuring goals by (a) reducing the Debtors' total funded indebtedness (including interest) by approximately 62%, from approximately $375 million as of October 10, 2013 to approximately $144 million (b) providing the Debtors' with reasonable, long term financing and access to incremental commitments that will enable the Debtors to support their go-forward business needs and (c) providing for the establishment and funding of a litigation trust to consolidate and coordinate prosecution of certain claims and Causes of Action of the Contributing Claimants. The parties all agree that prolonged chapter 11 cases to implement the restructuring transaction would not be in the best interest of creditors, and have designed the prepackaged Plan to minimize the Debtors' stay in chapter 11. Expedited confirmation and consummation of the Plan will minimize any impact of bankruptcy on the Debtors' operations and enable the Debtors to emerge from chapter 11 as a financially stronger and more competitive business."

Read more Bankruptcy News

Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

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.

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.

Read More.

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."