In Re S-Tek 1, LLC

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Full Text of Court Cases
June 13, 2022
8713 Surveying Services
541370 Surveying and Mapping (except Geophysical) Services
bankruptcy
bankruptcy, business valuation, asset value, collateral, fair market value (FMV), noncompete agreement, book value, burden of proof, accounts receivable, fixed assets, replacement value

In Re S-Tek 1, LLC
2022 Bankr. LEXIS 1649
US
Federal Court
New Mexico
United States Bankruptcy Court
Jeremiah Grant, Sam Baca
Robert H. Jacobvitz

Summary

The debtor, S-Tek 1 LLC, submitted a motion to value to the Bankruptcy Court to determine the value of the collateral of Surv-Tek Inc. as to debt owed it by the debtor pledged as collateral for debt owed by S-Tek to Surv-Tek. The valuation was to be used in the confirmation of a Chapter 11 reorganization of S-Tek. The court used the replacement value standard of value instead of the “ongoing concern” value since the replacement value provided a value greater than the “enterprise value” (i.e., ongoing concern value).
In Re S-Tek 1, LLC
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See Also

Bankruptcy Court Uses the ‘Replacement Value Standard’ as It Determines That Debtor ‘Enterprise Value’ Is Lower and Inappropriate

The debtor, S-Tek 1 LLC, submitted a motion to value to the Bankruptcy Court to determine the value of the collateral of Surv-Tek Inc. as to debt owed it by the debtor pledged as collateral for debt owed by S-Tek to Surv-Tek. The valuation was to be used in the confirmation of a Chapter 11 reorganization of S-Tek. The court used the replacement value standard of value instead of the “ongoing concern” value since the replacement value provided a value greater than the “enterprise value” (i.e., ongoing concern value).