“Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you hoped for, or for that matter to accept temporary losses.”

 ― Alfred P. Sloan 

By David Johnson | @TurnaroundDavid

  • Linn Energy exploring debt options to weather oil collapse (Reuters): Independent oil and gas exploration company Linn Energy, with the highest leverage ratio (4.57) among its peer group, is exploring restructuring options as it seeks to weather the collapse in oil prices that began more than a year ago.
  • Ukraine’s Sovereign Restructuring: Why is this sovereign deal ground-breaking? (Weil Bankruptcy Blog): Sovereign debt restructuring is never easy, but the successful restructuring of Ukraine’s debt brought to market a number of innovative features that are likely to be seen again.  Over 14 exchange offers, the Ukraine restructuring provided upside to bondholders through GDP-linked securities as well as downside protection via covenant protections and Collective Action Clauses (CACs).    
  • How Ziff Davis survived the death of print (Fortune): CEO Vivek Shah oversaw the revitalization of publisher Ziff Davis by rebuilding the print company for the digital age.  Shah’s “burn the boats” approach has led to a steep increase in value, as the company has powered to $66 million in EBITDA on revenue of $190 million.     
  • Puerto Rico Is Running Out of Options (Bloomberg): Mired in a decade-long recession and facing an aggregate $72 billion debt burden that governor Alejandro Garcia Padilla maintains is “not payable”, the Puerto Rico is running out of options.  Absent congressional action to allow the commonwealth to file for bankruptcy, the ability of Puerto Rico to successfully restructure its debt may be severely constrained.
  • American Apparel: Paula Schneider’s ‘wild ride’ to revive the brand (The Guardian): Paula Schneider might have one of the toughest jobs in retail.  The new CEO of American Apparel is not only following controversial founder and recently ousted CEO Dov Charney, but also seeking to navigate the company through a recent chapter 11 bankruptcy filing.