Opioids, Bankruptcies, And The U.S. Supreme Court

As distressed-debt analysts, we have to keep tabs on the developments with the bankruptcy code. Typically, our most likely case is that the bond issuer will manage to make all the required interest payments and repay the principal at maturity. But not always.

Sell Alert: Green Plains 2.25% Bond

In the May 9 Distressed Investing report “Cracking The Code,” we recommended purchasing Green Plains’ 2.25% bonds maturing March 15, 2027. We now recommend selling those bonds. In May, when we recommended them, the bonds were trading at $785, which equated to an annual return of just over 16%. We suggested pairing each bond with

Sell Alert: aTyr Pharma

Yesterday, aTyr Pharma (Nasdaq: ATYR) reported that its Phase 3 trial of efzofitimod in pulmonary sarcoidosis failed to meet its primary endpoint. The study’s results were doomed by a much higher-than-expected placebo effect, making it impossible for efzofitimod to attain the statistically significant differentiation relative to placebo needed for the trial’s success. Shares of aTyr

Sell Alert: Half Position Of Shares Of Green Plains

Yesterday, August 27, Green Plains (Nasdaq: GPRE) announced that it had agreed to sell its 120 million gallon per year ethanol plant in Obion, Tennessee, for $190 million. This equates to an impressive valuation of $1.58 per gallon of capacity. Shares of GPRE rose 12% to $11.18 per share following the news. We recommend selling half

Just Because They’re Down Doesn’t Mean They’re Out

A noteworthy entrant to the distressed ranks is Xerox (XRX) – in the 1980s, the copier producer’s stock was one of the greatest performers ever, registering an astounding 4,500-fold gain in the 50 years through its all-time high on May 3, 1999. Xerox’s senior debt is now on the watchlist for downgrading.