Distressed Debt Investing

Have any of you all seen the Chesapeake preferred shares? They have been killing it, over $40/share now! Regretting halving my position twice on that one lol. It is funny, because the second time I sold right afterwards I was sitting there thinking I bet I am going to regret selling that lol. Oh well, still have some so I am quite happy to see the move.

EXXI is the big wildcard for me. Still waiting to see what happens there. One thing I recently learned about was trade claims. I just hadn't even really thought about them before. But I was reading on Marc Lasry (Avenue Capital) and he was mentioning how he and his sister (partners of the firm) were some of the first people to really dig into trade claims and be active in them. When looking at EXXI's BK filings, it is interesting to see all the trade claims being sold. Have to wonder what kind of deals they are working out and what the expected recovery rates are there.
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@Sig , @newwurldmn , @vanzandt thank you three for the feedback on here today. I truly appreciate it.
 
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I am out of BTU!
Can't remember the exact numbers but I'm sure they are in this thread somewhere.

Bought $5k for 4ish
Sold $3k @ 12ish
Sold $2k @35.xx today.

Solid profit overall, I'll take it!
 
Hey everybody, random question for anybody who uses IB and has held a company during bankruptcy, how do you obtain the documents/paperwork for voting on the bankruptcy and the plan documents? I have held bonds into bankruptcy through both IB and Etrade and Etrade is the only one that sends me any documents on the proceedings. I thought that was kind of odd.

I know the plan documents are of course available through the court website, just curious why one broker sends out everything and the other doesn't even give any type of notification.

Side note: Those BTU bonds really soared! Can't complain on my profit, but wow! Only holding EXXI now, but am starting to look for more plays now. If you are watching any names currently, feel free to throw them out there as I'd love to take a look at some more potential plays.
 
Thanks for sharing, I'll watch it tonight. Speaking of Oaktree, have you ever looked into their stock? I saw something on them today and looked it up, they are down a decent amount it looks like. Pretty hefty dividend and a PEG ratio of around .5 when I checked Schwab today.
 
Energy XXI is out of bankruptcy and the stock is up and trading as of today!

I had 12,000 face value of bonds that I bought at $4 approx. I now have 64 shares that are trading around the $30 area. I received warrants as well I believe, but I'm not sure what the exact amount is. They haven't started trading yet, so IB doesn't show it in my open positions. The recovery ended up being better than expected relative to where the bonds were trading when I last looked before the end of the year.

In regards to my last post, I bought some of Oaktree's stock @ $38.38 last week. I really wanted to pick it up in my 401k, but we are in the middle of switching plans at work and I am completely locked out of everything and have been since the end of December. We were with TRS and I could manage the portfolio through Schwab, but the new plan administrator is a company called Empower....I've read nothing but horrible reviews on them and after being locked out for almost 3 weeks now...really looking forward to this change :banghead:
 
I haven't dug into them much, but they definitely concern me as it seems Sears has been in the news forever about their constant decline. I'll have to take a look though and see. Maybe somebody else can chime in if they have looked into them.
 
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