Bonds / Post-Bankruptcy Stocks
FriendFinder Networks Plan Confirmed, Effective
The U.S. Bankruptcy Court issued an order confirming FriendFinder Networks’ (n/k/a PMGI Holdings) Modified Second Amended Joint Plan of Reorganization, and the Plan subsequently became effective. The Court confirmed the Plan on December 17, 2013. The Plan is expected to reduce the Company’s annual interest expense by over $50 million, eliminate approximately $300 million of secured debt and return control of the Company to founder Andrew Conru. Under the Plan, the 14% Senior Secured Notes due 2013 will be exchanged for new notes in the same principal amount, plus certain additional consideration in the form of cash or notes. Holders of the 11.5% Non-Cash Pay Secured Notes due 2014 and 14% Cash Pay Secured Notes due 2013 will receive substantially all of the new common stock to be issued by reorganized FriendFinder Networks, plus cash consideration subject to certain conditions. The Company’s current common stock will be extinguished once the agreement becomes effective and will no longer trade on the open market. This web-based social networker filed for Chapter 11 protection on September 17, 2013, listing $452 million in pre-petition assets.
Read more Bankruptcy News
Identify & Profit from Distressed Investing
Turnaround Investing Blog
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.
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.
Turnaround Letter Stock Pick Named Top Performer of 2017
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."
Copyright © All Rights Reserved.
Design, CMS, Hosting & Web Development :: ePublishing.