3rd Circuit Confirms DCF to Value Mortgage Portfolios in Dysfunctional Markets

Business Valuation UpdateVol. 17 No. 5
Legal and Court Case Update
May 2011
bankruptcy

In re American Home Mortgage Holdings, Inc. (II)
2011 WL 522945 (C.A. 3 (Del))
February 16, 2011
US
Federal Court
3rd Circuit
United States Court of Appeals
Dr. Ronnie Clayton (debtors); Robert Branhthover (plaintiffs)
Sloviter

Summary

In issue of first impression, 3rd Circuit confirms that the term “commercially reasonable determinant of value” as used in Sec. 562 of the Bankruptcy Code includes the discounted cash flow methodology, particularly when markets are dysfunctional.

See Also

In re American Home Mortgage Holdings, Inc. (II)

In issue of first impression, Third Circuit confirms that the term “commercially reasonable determinant of value” as used in Sec. 562 of the Bankruptcy Code includes the discounted cash flow methodology, particularly when markets are dysfunctional.