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 / Bonds

Excel Maritime Carriers Plan Amended, Disclosure Statement Approved

Excel Maritime Carriers filed with the U.S. Bankruptcy Court an Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. Although both the Plan and Disclosure Statement are dated November 26, 2013, the filing also contains statements of changed pages for both the Plan and related Disclosure Statement. The outlined changes relate to, among other things, the Company’s dispute with Robertson Maritime Investors. The Court subsequently approved Excel Maritime Carriers’ Disclosure Statement. According to the documents filed with the Court, “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).” The Court scheduled a January 27, 2014 hearing to consider the Plan.

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Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. 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."