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 / Technology Hardware, Equipment, & Services

LifeCare Holdings Case Dismissed

The U.S. Bankruptcy Court approved LifeCare Holdings’ motion for dismissal of its Chapter 11 proceedings. As previously reported, “At the conclusion of the sale process, the highest bid was a credit bid from the Prepetition Secured Lenders for less than all of the outstanding debt owed to them. As a result of successfully closing this transaction, the Purchaser continues to operate the business as a going concern, patients continue to be cared for and employees continue to have jobs. However, as no cash bid sufficient to pay the Prepetition Secured Lenders in full was received, the Debtors are unable to confirm a chapter 11 plan. Although the Purchaser provided limited funds to be placed in escrows to satisfy certain specified wind down costs, the Debtors’ estates have no remaining assets with which to satisfy the Prepetition Secured Lenders’ remaining claims or any other secured, administrative or priority claims against the Debtors’ estates. However, because certain processes related to the Chapter 11 Cases remain unresolved - including the Committee’s claims resolution process and the United States’ Appeals - the Debtors believe it would be inappropriate to seek to convert these Chapter 11 Cases to chapter 7. Accordingly, the Debtors seek entry of an order dismissing the Chapter 11 Cases as the most efficient way to keep fees and expenses to a minimum without impairing the rights of third parties.” This operator of long-term acute care hospitals filed for bankruptcy protection on December 11, 2012, listing $513 million in pre-petition assets.

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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

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."