Bankruptcy Court Determines Fair Value Under Asset Approach With ‘Limited Evidence’ Available to It

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Court Case Digests
July 18, 2023

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5812 Eating and Drinking Places
722511 Full-Service Restaurants
bankruptcy, shareholder dissent/oppression
damages, fair value, restaurant, shareholder oppression, appraisal, real estate, stock, balance sheet, fair market value
Herremans v. Fedo (In re Herremans)
2023 Bankr. LEXIS 1800; 2023 WL 4611429
US
Federal Court
Michigan
United States Bankruptcy Court
Paul A. Wassink, CPA; Stacey L. Broersma
James W. Boyd

Summary

This case involved a hotly contested battle over the fate of a Ponderosa restaurant in Michigan. The two owners, having had a falling out, pursued contentious litigation to wrest control of the restaurant from each other. Having no business valuation available to the court, the court was left with a real estate appraisal and limited evidence of assets and liabilities to determine the fair value of a 50% interest in the restaurant to be used in the buyout of one of the shareholders by the other shareholder.

See Also

Herremans v. Fedo (In re Herremans)

Full Text of Court Cases
July 18, 2023

This case involved a hotly contested battle over the fate of a Ponderosa restaurant in Michigan. The two owners, having had a falling out, pursued contentious litigation to wrest control of the restaurant from each other. Having no business valuation available to the court, the court was left with a real estate appraisal and limited evidence of assets and liabilities to determine the fair value of a 50% interest in the restaurant to be used in the buyout of one of the shareholders by the other shareholder.