Misunderstanding of Facts Results in Overvaluation of Fuel Supply Rights

Business Valuation UpdateVol. 23 No. 6
BVLaw Case Update
June 2017
5172 Petroleum and Petroleum Products Wholesalers, Except Bulk Stations and Terminals
424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
bankruptcy
weighted average cost of capital (WACC), discount, discounted cash flow (DCF), franchise, fraudulent transfer, projections, constructive fraud, net income, reasonably equivalent value, contract

r2 Advisors, LLC v. Equitable Oil Purchasing Co. (In re Red Eagle Oil, Inc.)
2017 Bankr. LEXIS 541
February 27, 2017
US
Federal Court
Wyoming
United States Bankruptcy Court
Josh Harrison (plaintiff/plan agent); unknown (defendant)
Parker

Summary

Debtor’s fuel supply rights had value either in form of an implied contract, customer relationship, or simply an income stream, court says; court does not assign specific value but finds appraiser overstated its value due to misunderstanding of key facts.

See Also

Misunderstanding of Facts Results in Overvaluation of Fuel Supply Rights

Debtor’s fuel supply rights had value either in form of an implied contract, customer relationship, or simply an income stream, court says; court does not assign specific value but finds appraiser overstated its value due to misunderstanding of key facts.