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 / Diversified Financials

Westech Capital Plan Filed

Westech Capital's Chapter 11 trustee case filed with the U.S. Bankruptcy Court a Chapter 11 Plan and related Disclosure statement. According to the Disclosure Statement, "Under the Plan, Westech will continue post-confirmation as the 'Revested Debtor' to be managed and controlled by the Trustee as Plan Trustee without change of ownership or equity (except as may be approved by the Plan Trustee after Confirmation of the Plan), for the purpose of liquidating all claims, assets, opportunities, and operations of the Debtor, as well as management of those assets for the ultimate distribution to Allowed Claims of Creditors and Interests Holders. The Revested Debtor shall be funded from cash on hand, asset sales, expected litigation recoveries, and future business opportunities, all of which may be used in the Plan Trustee's sole discretion to pay all management, operating, litigation, and professional expenses incurred by the Revested Debtor. The restrictions on stock transfers currently in effect will continue in order to preserve the Debtor's net operating losses unless and until the Plan Trustee ends such limitation. Upon Confirmation, all voting or voting rights agreements are cancelled and terminated or rejected as will be reflected in amended bylaws of the Revested Debtor."

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Turnaround Investing Blog

Turnaround Investing Blog

IBM: Not Yet Time to Swing at this Pitch

IBM’s stock underperformance since IBM’s current CEO took the helm in 2012 has been stark, with the shares declining 23% while the S&P500 Index has more than doubled. One big problem: revenue growth rate is zero, at best. Without revenue growth, what’s left to entice investors? The real driver of value at IBM – free cash flow that is used to repurchase shares. Can IBM borrow its way to shareholder prosperity as its cash flows shrink? What to do with IBM shares? Wait for a better pitch in the form of a catalyst or much lower valuation. 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."