Bids4bonds.com

The Recession that never was?

Patience

Even a stopped clock is correct twice a day.

 

Distressed debt opportunities have been meager. Every body has been able to get cash if needed.

PPA Model Porfolio

Our model portfolio is 60% cash, in a money market fund with a 5% yield. Some ten year government bond etf's. The remainder 40% is invested in about ten stocks that pay fat dividends and could probably appreciate.  There is an election coming up and the Federal Reserve is close to ending raising rates. The market will look good after the current pullback is finished.

Stay invested.

 

 

 

Stephen P. Vlahos

Performance Plus Advisors, Inc. 

Distressed Debt Investing-Revlon Consumer Products Corp

 

We like Revlon bonds at 6 cents on the dollar.

Revlon has filed for Chapter 11 bankruptcy. Revlon listed assets of $2.3 billion and debts of $3.7 billion. A debtor in possession (DIP) of $575 million has been set up.

Revlon has great brand awareness and should exit bankruptcy as a leaner consumer beauty products company.

We suggest investors review the bankruptcy information as it unfolds to determine the value of the company's unsecured debt.

 

                                                                                                                    

Revlon Consumer Products Corp:

$450 Million- Senior Unsecured Notes

                                                                                                  

6.25 % -Maturity- 8/01/2024-  Price 6

 

 

 

Stephen P. Vlahos

Performance Plus Advisors, Inc.

 

 

Distressed Debt Investing- Prepackaged Chapter 11 Bankruptcy

A prepackaged bankruptcy is an out of court restructuring proposal submitted to the bankruptcy court simultaneously with a Chapter 11 filing. The average Chapter 11 bankruptcy takes at least a year and can be two or three years before the company can emerge from Chapter 11 protection. A prepackaged plan takes less than six months, thus saving time and avoids the effects of dissension that accompany a bankruptcy filing. If the prepackaged plan is not overwhelmingly accepted, but is accepted by a majority of each impaired class, then the prepackaged plan is filed with the Chapter 11 petition. A prepackaged plan allows less deterioration of the property of the debtor. The votes for the Plan of Reorganization have been solicited and agreed upon prior to the filing. The major players have agreed among themselves about important issues. The prepackaged bankruptcy does not change the requirements concerning creditor approval of a Plan of Reorganization. 

 

 

 

 

 
 
  
 

Stephen P Vlahos

Performance Plus Advisors, Inc.

New Bids4bonds.com Website Expected 2020

Bids4bonds.com 

Creating a New and Exciting Website

Let's Make It Happen!!

We are building a new website to help educate fixed income investors and interested parties on how to make more income and protect their principal against losses.

We need your help to gain momentum in the Bids4bonds.com Campaign of 2020.

Our goal is to help educate fixed income investors by using our new web site and news letters.

You can help us spread the word about our vision.

 

 

 

 

Stephen P. Vlahos

Performance Plus Advisors, Inc.

Expected launch date for new website: Bids4bonds.com scheduled for August 2020

 

 

 

Radioactive Distressed Debt

 

  Distressed debt investors should not fret about the lack of attractive investing ideas. In the next five years (2020-2025), there is $600 billion dollars in debt maturities coming due, $150 billion of which is Ca1 or below. Many of these issues are trading below par and will not be able to refinance. Large companies should be okay while mid- caps and smaller companies will lack access to easy capital. Many of these high yield securities will become "radioactive" for investors. Higher interest rates, inflation and slow growth will bring many of these companies to the bone yard. 

Research on distressed debt is provided by Performance Plus Advisors, Inc.

 

 

Stephen P. Vlahos

Performance Plus Advisors, Inc

 

 

                                                              

 

 

 

 

List of Largest Companies in Chapter 11 Bankruptcy

1. Lehman Brothers Holding, Inc. ( September 2008 )-$691 Billion. Lehman Brothers was founded 150 years ago and became the largest American corporate banruptcy. Barclays bought Lehman's business for $1.75 billion, and Nomura purchased its Asia assets.
2. Washingtom Mutual, Inc. ( September 2008 )-$328 Billion. The largest bank failure in the US. Washington Mutual collapsed quickly after the housing bubble burst. J.P. Morgan payed $1.9 billion for the branches and deposits.
3. Worldcom, Inc. ( July 2002 )-$104 Billion. The most notable bankruptcy in the telecommunications industry. In 2004 Worldcom emerged from bankruptcy as MCI and was purchased by Verizon in 2005 for $7.6 billion.
4. General Motors Company ( June 2009 )-$91 Billion. After the US Government poured billions into this iconic car company, GM was forced into bankruptcy.
5. CIT Group ( November 2009 )-$71 Billion. CIT the largest lender to small and mid-sized business filed for bankruptcy despite loans from the government.
6. Enron Corp. ( December 2001)-$65 Billion. Enron hid losses in offshore companies, insider trading and accounting fraud forced this leading energy company into bankruptcy. Enron sold its natural gas business to Ashmore Energy.
7. Conseco, Inc. ( December 2002 )-$61 Billion. Conseco is a large insurance company who purchased assets in the mobile home financing industry which led to its Chapter 11 bankruptcy.
8. MF Global Holdings ( October 2011 )-$40 Billion. Commodities and securities broker headed by John Corzine, prior governor and senator whose failed bet on sovergn debt brought this financial firm to ruin.
9. Chrysler Group LLC ( April 2009 )-$39 Billion. In May 2007 the Chrysler Group was sold to Cerberus Capital Management. In April 2009 Chrysler LLC filed for Chapter 11 protection. In June  most of its assets were sold, financed by the US Government.
10. Thornburg Mortgage ( May 2009)-$37 Billion. This real estate trust (Reit) with its focus on jumbo adjustable mortgages failed during the subprime mortgage crisis.
11. Pacifac Gas & Electric Co. ( April 2001)-$36 Billion. After deregulation volatile energy costs drove this utility into bankruptcy. The State of California provided funds during reorganization.
12. Texaco, Inc. ( April 1987 )-$35 billion. This large oil company merged with Chevron in 2000, a $35 billion deal. The company filed for bankruptcy after a $10 billion legal battle with Pennzoil.
13. Financial Corp of America ( September 1988 )-$34 Billion. This holding company for American Savings and Loan filed in September 1988. American was turned over to the Robert M. Bass Group for an injection of $350 million.
14. Refco Inc. ( October 2005 )-$33 Billion. This broker of commodities and futures cratered after its CEO hid $430 million in bad debts. Christie's auction house sold Refco's art collection and Philip Bennett (CEO) was sentenced to 16 years in prison.
15. Indy Mac Bancorp, Inc. ( July 2008 )-$32 Billion. Largest savings and loan in Los Angeles and fourth largest bank failure. One West Bank was created in March 2009 from this banks failure.
16. Global Crossing LTD. ( Janurary 2002 )-$30 Billion. Global Crossing is a telecommunications company which provided network services worldwide. Since emerging from bankruptcy the company has attempted to re-focus its business.
17. Bank of New England Corp. ( Janurary 1991)-$29 Billion. The FDIC seized this regional bank (470 branches ) because of losses in its loan portfolio. The liquidation company was named Recoll Management Corp.
18. Calpine Corp. ( December 2005 )-$27 Billion. This clean and green energy company emerged from bankruptcy in March 2008.
19. New Century Financial Corp. ( April 2007 )-$26 Billion. New Century a (Reit) was the second largest subprime mortgage lender and a casulty of the housing bubble.
20. Ual Corp ( December 2002 )-$25 Billion. This airline entered a long and complex process of reorganization, emerging from protection in Feburary 2006.
21. AMR Corp. ( November 2011)- $ 25 Billion. Last of the major carriers to file. AMR Corp singled out industry leading labor costs as one reason for it's bankruptcy filing.
22. Adelphia Communications ( June 2002 )-$21 billion. Adelphia was the fifth largest cable company before filing for bankruptcy in 2002. The majority of assets were acquired by Time Warner Cable and Comcast in July 2006.

 

 

Stephen P. Vlahos

Performance Plus Advisors, Inc.

 

 

List Of Distressed Oil Companies

Distressed debt investors can use this list to find speculative, very, very, high yielding fixed income securities. Buyer beware! All of these companies's debt will or can be affected by debt restructuring and bankruptcy.

 

                                    List of Distressed Oil Companies (alphabetical order)

 

1. Energy XXI LTD                                  (EXXI)
2. Goodrich Petroleum Corp.                  (GDP)
3. Halcon Resources Corp.                     (HK)
4. Key Energy Services                           (KEG)
5. Magnum Hunter Resources Corp.       (MHR)
6. Penn Virginia Corp.                            (PVA)
7. Sandridge Energy, Inc.                       (SD)
8. Swift Energy Co.                                (SFY)
9. Ultrapetrol (Bahamas) LTD                 (ULTR)
10. Exco Resources Inc.                           (XCO)

 

Performance Plus Advisors, Inc. provides research on the debt of these companies. Call or email if interested in these companies or any other company that we follow.

 

Stephen P. Vlahos

 

 

 

Trading Opportunities-Let's Roll with Coal

 

 

 

Arch Coal

Arch Coal is the second largest coal producer in the U.S. Arch Coal was formed in 1997 through the merger of Ashland Coal and a private company, Arch Minerals Corporation. Since then Arch Coal has continued to grow especially in the Powder River Basin. Arch Coal operates 32 mines and has 5.5 billion tons of coal reserves.

 

Alpha Natural Resources, Inc.

Alpha was formed in 2004 through the acquisition of the Brinks Company coal business and Coastal Coal Company. In 2011 Alpha agreed to buy Massey Energy for $7 billion. The company operates 81 mines and has 4.3 billion tons of reserves.

 

Trading Opportunities for High Yield Junk Bond Investors Willing to Speculate on "Catching a Bottom"

 

Arch Coal 7's due 6/15/19, approx price 70, current yield 10 %, YTM 16.21%

Arch Coal 7 1/4 due 10/1/20, approx price 69, current yield 10.05 %, YTM 15.22 %

Arch Coal 7 1/4 due 6/15/21, approx price 68, current yield 10.7 %, YTM 14.88 %

Alpha Natural 6 1/4 due 6/1/21, approx price 69, current yield 9.1 %, YTM 13.34 %

 

Performance Plus Advisors, Inc. provides research on distressed debt securities and high yield junk bonds. If interested in our high yield suggestions give us an email.

 

Stephen P. Vlahos

 

 

 

Patriot Coal Exits Chapter 11 Bankruptcy

 

Patriot Coal Plan of Reorganization

The Patriot Coal Plan of Reorganization allows for a private stock distribution in the newly formed Patriot Coal as it exits Chapter 11 Bankruptcy, expected by year end 2013.

Initially holders of the 8 1/4's will receive 60% of the common and after a Rights Offering holders will own 92.3%.

The aggregate subscription price for the Payment In Kind Notes will be $250 million. The Backstop Parties (Knighthead) will be offered rights to purchase up to 40% of the Rights Offering Notes and up to 40% of the Rights Offering Warrants. These warrants will exercise at 1 cent. Then the Senior Note Claim ($250m) will represent 92.3% of the common stock.

Other holders excluding the Backstop Parties will participate in remaining notes and warrants.

Convertible debt, (the 3 1/14's) and general unsecured  will participate marginally.

Shares will be delivered to a Voting Trust.

Shares will not be trading.

I guess you will need to sell your common stock on EBAY?

 

Stephen P. Vlahos

Related articles

Patriot Coal Receives Court Authorization To Solicit Creditor Approval For Plan Of Reorganization

Let's Roll with Coal

 

                                                                  Let's Roll With Coal

 

                                                                    Investment Opportunities

Patriot Coal Corporation (Chapter 11 Bankruptcy) $250M    8 1/4 due 4/30/18          price 48

Distressed debt investors should consider what the recovery will be on this bankruptcy claim.

                                                                    Trading Opportunities

For Hi yield junk investors willing to follow these issues and speculate on catching a bottom: 

Arch Coal $1Billion                         7 1/4 due 6/15/21        price 83 current yield: 8.7% YTM: 10.45%

Arch Coal  $500 Million                7 1/4 due 10/1/20         price 81 current yield: 8.95% YTM: 10.90%

Arch Coal  $1Billion                        7  due 6/15/19              price 82 current yield: 8.84% YTM: 11.22%

Alpha Natural $700 Million           6 1/4 due 6/1/21           price 83 current yield: 7.5% YTM: 9.34%

Alpha Natural $800 Million           6 due 6/1/19                  price 81  current yield: 7.4% YTM: 10.39%

 

Performance Plus Advisors, Inc. provides research on distressed debt securities. If interested in a research report on Patriot Coal or any other company we follow just give us a call or email us.

727-441-1305 ext 201

 

Stephen P. Vlahos