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Jon Peterson

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Articles by Jon Peterson

Karmaloop Sale Approved Despite Committee Objection

A collection of Karmaloop’s creditors filed an objection in bankruptcy court to its proposed auction on Thursday, May14th. The objection was made as the Karmaloop auction was approaching, in which the company’s assets would be sold. This Official Committee of Unsecured Creditors felt that the sale, as proposed, would have allowed Karmaloop’s secured creditors to take the estate property and […]

Illinois State Supreme Court Rules Pension Reform Bill Unconstitutional

The Illinois Supreme Court voted unanimously on Friday, May 8, to strike down a pension reform law that was passed in 2013 aimed at addressing the state’s burgeoning public pension debts. The law would have made changes to cost of living adjustments, retirement ages and salary used for pension benefits. Affirming a lower court ruling […]

Judge’s Ruling Protects GM Against Certain Ignition Switch Lawsuits

A federal bankruptcy judge ruled recently that GM’s 2009 bankruptcy protects the New GM from potentially billions of dollars in claims related to faulty ignition switches. The main point of contention in the case were some 140 lawsuits from plaintiffs, primarily from the families of 84 people whose deaths have been linked to the faulty […]

The Rumors of Kanye West Buying Karmaloop Have Been Greatly Exaggerated

There has been a lot of hot air blown in the past couple of weeks regarding Kanye West and Dame Dash being interested in buying the troubled e-commerce retailer Karmaloop. The two made a series of Instagram posts where they described with some bluster how they were purchasing the company. “We just about to do […]

More on Salon – Applying a Valuation in Bankruptcy

 Now, we return to our case study of Salon Media Group with an eye towards developing a thesis and applying valuation methodologies discussed in an earlier article in this series here. There are, as I mentioned in my previous article on Salon, large issues of concern with the current stock offering. Given that insiders have […]

Introduction to Distressed Analysis – Developing Your Investment Thesis and Valuation Methods

Ok, time for a more in depth look at making a thesis and a valuation. From the outset, I want to underscore a point raised in my previous article here, that most investors will want to enter the distressed investing space by relying on the expertise of various funds that focus on these types of investments. Thus, I’ll first address here the […]

How to Analyze a Distressed Company (an Introduction) – Salon Media Group

In my last article, I described some of the ways in which individuals can invest in the distressed space. I also described why I think that for the average person it’s generally a much better idea to not try to make individual investments, but rather put money into a fund that has a good track […]

Is Distressed Investing for “the Little Guy”?

Given the focus of this site on distressed debt and equities, I’d like to highlight some points for those considering allocating some of their portfolio to distressed securities. The question I’ll address today is: should self-managed individual investors consider making their own picks in distressed securities? And if so, what is the best way to […]

What is Distressed Investing?

Distressed investing has been a distinct style of investing for a couple of decades now. Many of us probably feel we understand the general gist of it–purchase bonds of a company that are trading at 50 cents on the dollar, or equity shares that are priced below their long-term value, and if you’ve done your […]

Cram Downs and Artificial Impairments – Can a Debtor Rewrite its Own Credit Terms in a Bankruptcy?

It is a principle of credit lending that creditors should charge less in interest if they take on less risk, but can charge more interest (and thus make more profit) if they take on a greater risk. The “secured,” more “senior” creditors of a company (those whose debt is collateralized by some specific property that […]