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 / Transportation

Excel Maritime Carriers Plan Filed

Excel Maritime Carriers filed with the U.S. Bankruptcy Court an Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “The Plan memorializes the terms of a consensual restructuring of the Debtors as agreed among the Debtors, their secured lenders holding more than 80% of such lenders’ claims, the Official Committee of Unsecured Creditors, Ivory Shipping Inc. and other key constituents….The Debtors, with the assistance of their investment banker, estimate their total enterprise value to be between $605 million and $655 million, with a mid-point of $630 million. However, approximately $765 million is outstanding under the Debtors’ Syndicate Credit Facility, after recognition of the adequate protection payment of $6.2 million made on October 1, 2013….Holders of approximately 82.9% of the Syndicate Credit Facility Claims have signed on to a plan term sheet pursuant to which they agreed to support the Plan to the extent it is consistent in all material respects with the treatment of the Syndicate Credit Facility lenders’ claims as described below, including by voting to accept the Plan. Under the Plan, the Syndicate Credit Facility lenders will receive, on account of their Syndicate Credit Facility Secured Claim, a restructured debt obligation in the amount of $300 million and 83.3% of the equity in reorganized Excel, prior to the co-investment rights described below, based on the mid-point of the valuation range….By signing the plan term sheet, the Consenting Noteholders have agreed to support the Plan, including by voting to accept the Plan. Under the Plan, holders of impaired general unsecured claims against Excel will receive the following distribution on account of their claims: (i) 8.0% of the stock in reorganized Excel, subject to dilution on account of the co-investment rights offered to such holders (or 7.9% of the fully diluted stock in reorganized Excel representing 1,600,000 shares of stock in reorganized Excel), (ii) the right to purchase up to an additional 1.5% of the total outstanding equity in reorganized Excel, at an offering price equal to $16.25 per share or a total purchase price of $5 million, and (iii) the right to purchase up to an additional 1.4% of the total outstanding equity, at an offering price equal to $17.25 per share or a total purchase price of $5 million. The price of each tranche of rights offered is based on a total post new money equity value of reorganized Excel of $330 million (with reorganized Excel having $300 million of funded indebtedness on the Effective Date).”

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Turnaround Investing Blog

Turnaround Investing Blog

Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

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."