Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Post-Bankruptcy Stocks

Memorial Production Partners Plan Effective

Memorial Production Partners' Second Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection under the name Amplify Energy. The U.S. Bankruptcy Court confirmed the Plan on April 14, 2017. The Company announced the engagement of Jefferies as lead advisor and the initiation of a process to explore and evaluate potential strategic alternatives, which will include marketing certain non-core assets for sale. BankruptcyData's detailed Plan Summary notes, "The Plan provides substantial benefits to the Debtors and all of its stakeholders. It would leave the Debtors' business intact and substantially delevered, providing for the reduction of approximately $1.4 billion of the Debtors' existing net debt. This deleveraging would enhance the Debtors' long-term growth prospects and competitive position and allow the Debtors to emerge from the Chapter 11 Cases as reorganized entities better positioned to withstand depressed oil and natural gas prices." According to a corporate release, following completion of the financial restructuring, the Company will have 25 million shares of its common stock outstanding. The Company informed NASDAQ that it does not intend for the shares of Amplify Energy to be listed on NASDAQ, but it is in the process of registering for its shares to be traded and quoted on the OTCQX or OTCQB market. William J. Scarff, president and chief executive officer states, "This is an important day for our company and our stakeholders. In addition to strengthening our financial position, we have made great strides organizationally that will position the Company to generate significant free cash flow, drive growth and achieve long-term success." The oil and natural gas producer filed for Chapter 11 protection on January 16, 2017, listing $2.9 billion 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."