In 2018 I thought the second lien notes of Pyxus International Inc represented a good reward to risk ratio. 2 years later and it turns out I was completely wrong as Pyxus International Inc stock went to 11 cents per share and the second lien notes were offered 2 cents on the dollar in a prepackaged Chapter 11 bankruptcy.
Note: this was written prior to Pyxus's bankruptcy in 2020. For an updated analysis of what went wrong, check out Bankrupt: Pyxus International Inc. Stock. Pyxus International, fka Alliance One International, coordinates the purchase, processing, and storage of leaf tobacco from farmers all over the world and then bundles it all together and sells it… Continue reading Pyxus International’s Second Lien Debt