Court Determines Value of Cashless Stock Options; Illusory Dividend Not Deducted From FMV

Business Valuation UpdateVol. 12 No. 2
Legal and Court Case Update
February 2006

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3089 Plastics Products, NEC
326199 All Other Plastics Product Manufacturing
contract
fair market value (FMV), minority discount, stock option, retained earnings
Colmen Capital Advisors, Inc. v. Polar Plastics, Inc.
2005 U.S. Dist. LEXIS 15178
July 26, 2005
US
Federal Court
Pennsylvania
United States District Court
Savage

Summary

In this contract dispute, the principal valuation issue was the value of stock options that Colmen Capital Advisors Inc. (Colmen), had received for 20% of the common stock in Polpart Placements Inc. (Polpart) and Polar Plastics Inc. (PPI) in exchange for Colmen's turnaround work related to these and affiliated companies.

See Also

Colmen Capital Advisors, Inc. v. Polar Plastics, Inc.

Full Text of Court Cases
July 26, 2005

In this contract dispute, the principal valuation issue was the value of stock options that Colmen Capital Advisors Inc. had received for 20% of the common stock in Polpart Placements Inc. and Polar Plastics Inc. in exchange for Colmen's turnaround work related to these and affiliated companies.