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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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


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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."