Insolvency Analysis Hinges on Reasonableness of Projections

Business Valuation UpdateVol. 16 No. 9
Legal and Court Case Update
September 2010
3651 Household Audio and Video Equipment
334310 Audio and Video Equipment Manufacturing
bankruptcy

In re Global Technovations, Inc. (I)
2010 WL 2671706 (Bkrtcy. E.D. Mich.)
June 30, 2010
US
Federal Court
Federal
United States Bankruptcy Court
Van Conway (debtor); Jeffrey Risius (defendants)
Tucker

Summary

Bankruptcy court voids $25 million acquisition based on valuations that used historic, 12 months' earnings prior to closing and rejecting expert who relied substantially on inflated, unreasonable management projections.

See Also

In re Global Technovations, Inc. (I)

Bankruptcy court voids $25 million acquisition based on valuations that used historic, 12 months' earnings prior to closing and rejecting expert who relied substantially on inflated, unreasonable management projections.