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 / Energy

American Natural Energy Plan Filed

American Natural Energy (ANEC) filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, "The holders of Class 1 priority Claims of $106,032.27 will be paid in full as soon as practicable on or after the Closing. Class 1 is unimpaired and deemed to accept the Joint Plan….Secured Claim of Hillair is temporarily allowed at $3,500,000 for solely purposes of implementing the bidding procedures. If Hillair acquires the New Equity Interests without a need for an Auction, then there is no need to determine the full amount of the Claim. However, if Hillair is not the successful bidder in an Auction, it reserves its right to assert its full Claim in the approximate amount of $4,091,000 subject to all parties rights to object to same….If an Auction occurs, the holder of the Class 2 Secured Claim will serve as the Stalking Horse. Its Bid will be equal to $5,100,000 composed of the temporarily Allowed amount of its Class 2 Secured Claim of $3,500,000, plus the Proposed Dip Loan Balance and Cash equal to $1,600,000. If no competitive bid is made pursuant to the Court-approved Bid Procedures, Hillair will consummate the Equity Acquisition Transaction. If an Auction occurs and a cash offer of no less than $5,225,000 is made, Class 2 may either participate in competitive bidding by increasing the Cash necessary to be party to the Equity Acquisition Transaction or may elect to not exercise its rights to participate beyond its Stalking Horse Bid. Class 3 Lien Claims, as ultimately determined in the Lawsuit, will receive either payment in full or a pro rata distribution of the Excess, which is the Cash realized from the Equity Acquisition Transaction or sale of Assets, remaining after the payment or reserve for Administrative Claims and Priority Claims in the event that Hillair is the Successful Bidder. In the event that another bidder is successful, then the holders of Class 3 Claims will be paid in full. Allowed Class 4 Claims of $9,489,992.13 will receive a pro rata distribution of any portion of the Excess, which is the Cash realized from the Equity Acquisition Transaction or sale of Assets, over and above the amounts necessary to satisfy Administrative Claims, Priority Claims, Class 2, and Class 3 Claims….Subordinated Claims Class of Gothic Resources of $9,336,516 is composed of Debtor's affiliate and subsidiary holding the largest unsecured claim."

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Boston Beer--Time for Investors to Step Up to the Bar?

Boston Beer is the nation's largest craft beer company, with 2017 revenues of over $900 million. Since its days as a start-up in 1984, it has led the nation's growing taste for craft beers; and shareholders have enjoyed tasty returns along the way. So why is The Turnaround Letter--which focuses on out-of-favor companies undergoing major positive changes--even thinking about this ostensible "growth" company?  Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

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."