Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Telecommunication Services

FiberTower Plan Filed

FiberTower filed with the U.S. Bankruptcy Court a Second Amended Chapter 11 Plan and related Disclosure Statement in order to accommodate certain modifications requested at the October 29, 2013 Disclosure Statement hearing. According to documents filed with the Court, “In summary, the principal terms of the Plan...are as follows: (i) the holders of the 2016 Notes...will receive one hundred percent (100%) of the common equity in Reorganized FiberTower, in the form of shares of New FiberTower Common Stock; and (ii) Reorganized FiberTower shall receive one hundred percent (100%) of the New FiberTower Subsidiary Equity Interests in Reorganized FiberTower Network Services and Reorganized FiberTower Licensing, and Reorganized FiberTower Licensing shall receive one hundred percent (100%) of the New FiberTower Subsidiary Equity Interests in Reorganized FiberTower Spectrum, such that the Debtors’ corporate structure shall effectively remain in place following the Effective Date and (iii) the holders of the Allowed 2016 Deficiency Claims, Allowed 2016 guaranty Deficiency Claims, Allowed 2012 Claims, Allowed 2012 Guaranty Claims, and Allowed General Unsecured Claims will receive their Pro Rata share of the Litigation Trust Interests. The Litigation Trust shall hold and administer the Litigation Trust Assets (consisting of claims or Causes of Action arising under Chapter 5 of the Bankruptcy Code and the Estate D&O Claims or the proceeds thereof) for the benefit of the Beneficiaries.” The Court scheduled a January 15, 2014 hearing to consider confirming the Plan.

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Free Report: Turnaround Investing Mistakes

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Turnaround Investing Blog

Tupperware: Not a Good Fit as a Turnaround Stock

At first glance, the shares have decent appeal as a turnaround investment. Looking deeper, however, the fundamentals are not as strong and stable as they appear. Surplus cash flow is tight, a key driver is weakening, it is increasingly reliant on China and has other nagging issues. We don’t see the new CEO as a catalyst for change. Despite the “first glance appeal”, Tupperware isn’t a good fit as a turnaround stock. 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."