Bankruptcy News

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

Bonds / Post-Bankruptcy Stocks

Patriot Coal Plan Confirmed, Effective

The U.S. Bankruptcy Court approved Patriot Coal’s Fourth Amended Joint Plan of Reorganization. The Plan subsequently became effective, and the Company emerged from Chapter 11 protection. “Today marks an exciting new beginning for our company and for our employees,” comments Patriot Coal’s president and chief executive officer, Bennett K. Hatfield. “We have accomplished the objectives of our reorganization and emerged in a much stronger position to compete in the global energy and steel markets. Importantly, we have also preserved nearly 4,000 jobs, signed new five-year labor agreements with the UMWA, and secured significant funding for retiree healthcare.” Patriot emerges from Chapter 11 reorganization with the following: The Company has lower debt levels and higher available liquidity, with dramatically reduced legacy liabilities related to retiree healthcare and other post-employment benefits. Patriot Coal has significantly reduced its operating costs, achieving more than $200 million in estimated annual cash savings. The Company has 1.8 billion tons of coal reserves, state-of-the-art mine complexes in three U.S. coal basins, and broad transportation optionality. Patriot Coal has long-standing relationships with prominent U.S. and international utility customers, steel producers, and energy trading companies. Concurrent with its emergence from bankruptcy, Patriot Coal successfully closed on $545 million in exit financing, with portions of the exit financing led by Barclays Bank and Deutsche Bank Securities and completed its rights offerings, receiving $250 million of junior capital from Knighthead Capital Management and other participating unsecured creditors. Upon the effectiveness of its Plan, all previously-issued and outstanding shares of Patriot Coal’s common stock were cancelled, as were all other previously-issued and outstanding equity interests and bonds. Patriot Coal issued shares of a new class of common stock to unsecured creditors as provided in the Plan. Additionally, the Company issued notes and warrants pursuant to the rights offerings. Patriot Coal expects to make initial distributions to unsecured claim holders in the first quarter of 2014. This coal producer and marketer filed for Chapter 11 protection on July 9, 2012, listing $3.8 billion in pre-petition assets.

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."