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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Amazon = US GDP 1970

Amazon joined Apple in reaching a $1 trillion market capitalization. $1 trillion is about the same as the total value of New York City property and the total value of loans at JP Morgan, the nation’s largest bank in terms of assets. Jeff Bezos’ $160 billion stake would place him (personally) as the #33 largest company in the S&P 500 in terms of market cap, next to Coca-Cola, Disney and Netflix. We aren’t bold enough to predict whether the shares will continue upwards or if they are in a bubble reaching maximum inflation. Setting aside for a moment their investment prospects, let’s admire the truly remarkable milestone that these two companies have reached. 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."