Volmanac leverages data to monitor and discover potential investment opportunities which display an asymmetric risk profile, allowing us to deploy more capital in trades that we perceive to have less risk than the market believes. Knowing if a company is going to file for bankruptcy certainly fits into this category - which is why Volmanac actively monitors WHOIS registrations for keywords of distressed companies.

When a company files for bankruptcy, oftentimes they will create a website to provide docket information to creditors. When Newpage filed, they created a website called “newpagerestructuring.com” on August 2nd, 2011 (see image below):

newpage

However, Newpage filed on September 7th, 2011 - over a month later. Newpage 11.75s trading down fairly substantially on the filing, given that there was still speculation over a deal with Verso and a few large holders before the bankruptcy. Knowing that this website had been registered one month prior would have been very helpful in handicapping the risk that Newpage would ultimately file - and this registration information is in the public domain.

Volmanac was most likely the only investor in the world who discovered this WHOIS record.

Many other companies telegraph bankruptcy filings the same way. Exide filed (again) for bankruptcy protection on June 10th, 2013. However, the site exiderestructuringinfo.com was registered on May 16th, 2013. While it is fairly clear some names will file, I do not believe Exide was 100% telegraphed to the market and I believe bonds were down 5-10 points in the month prior to filing. See WHOIS record below:

exide

This happens all the time, below is just a small sample of bankruptcies which were telegraphed by a WHOIS filing:

Company Website WHOIS Date Bankruptcy Filing Date WHOIS Record
Genco http://gencorestructuring.com 3-19-2014 4-21-2014 Record
General Maritime http://www.gmrrestructuring.com 10-31-2011 11-17-2011 Record
Geokinetics http://www.gokrestructuring.com 2-06-2013 3-10-2013 Record
Kaupthing Bank http://www.kaupthingreorg.com 11-28-2008 11-30-2008 Record
Edison Mission http://www.edisonmissionrestructuring.com 12-14-2012 (Friday) 12-17-2012 (Monday) Record
Borders http://www.bordersreorganization.com 2-14-2011 2-16-2011 Record
Terrestar http://www.terrestarcorprestructuring.com 1-25-2011 2-16-2011 Record
US Fidelis http://www.usfbankruptcy.com 9-28-2010 (Weekend) 9-30-2010 Record
American West Development http://www.awdevelopmentreorg.com 2-23-2012 3-1-2012 Record
ArchBrook http://www.archbrookrestructuring.com 6-24-2011 7-8-2011 Record
Atrium Companies http://www.atriumrestructuring.com 1-19-2010 1-20-2010 Record
Bearing Point http://www.bearingpointinfo.com 2-13-2009 2-18-2009 Record
Building Materials http://www.bmhcrestructuring.com 6-10-2009 6-16-2009 Record
Chiyoda America http://www.caireorg.com 8-18-2009 8-19-2009 Record
CommerceConnect http://www.cbmrestructuring.com 3-27-2009 8-3-2009 Record
Dallas Stars http://www.dslpinfo.com 9-7-2011 9-15-2011 Record
Fortunoff http://www.fortunoff-reorg.com 2-2-2009 2-5-2009 Record
Lenox Sales http://www.lgireorg.com 11-14-2008 11-23-2008 Record
MES International http://www.gsirestructuring.com 11-17-2009 11-20-2009 Record
Maxcom Telecomunicaciones http://www.maxcomrestructuring.com 7-11-2013 7-23-2013 Record
National Envelope http://www.nationalenvelopeinfo.com 5-28-2010 6-10-2010 Record
Proliance International http://www.pliinfo.com 6-23-2009 7-12-2009 Record

Volmanac actively monitors new website registrations for keywords to discover these websites. Please contact us if you are interested in receiving alerts when a new registration is found.