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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Books we Recommend for the Holidays

Looking for a stocking-stuffer for the investor or businessperson in your life, or perhaps for yourself? Don’t have a lot of time to stroll through a brick-n-mortar bookstore or wonder which books among Amazon’s endless inventory are actually worth buying? Our list, assembled by George Putnam and Bruce Kaser, includes some fascinating new titles as well as several timeless classics about successful investing and leadership. All are valuable reads which any recipient will be thrilled to dive into. 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."