This appeal in a California court involved a dispute over an appraisal of the plaintiffs’ 15% interest in a grocery store the defendant operated. The plaintiffs alleged that the award of the superior court was obtained by fraud and that the arbitrator prejudiced their rights.
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Competing Valuations of Trump Casinos Determine Fate, Feasibility of Restructuring
Bankruptcy court considers key valuation evidence—including total enterprise value, cost of debt, debt service capacity, and capex/EBITDA proections—in confirmation of reorganization plan for Trump casinos.
In re Zenith Electronics Corporation, Debtor
At issue are the approval of Zenith's Disclosure Statement and confirmation of Pre-Packaged Plan of Reorganization, including the valuation of Zenith.
Expert Value Is Not Equal to Market Value Under Exception to Absolute Priority Rule
Federal district court reverses bankruptcy court’s confirmation of debtor’s exclusive reorganization plan, finding that expert valuation does not satisfy requirement for actual market valuation under new value exception to absolute priority rule.
Industry Characteristics Bolster Reliance on Net Asset Value
In fight over plan confirmation, court finds nature of industry supports debtors’ reliance on net asset value approach to value Chapter 11 dry bulk shipper but not to the exclusion of more traditional methods; however, court rejects use of DCF.
In re Oneida Ltd.
In reorganization confirmation, Bankruptcy Court rejects DCF analysis for cost of debt based on comparable companies rather than actual exit facility.
In re Spansion
Bankruptcy court finds billion-dollar total enterprise valuation of flash memory manufacturer supports finding that proposed reorganization plan is fair, but declines confirmation pending amendments to equity incentives for management.
In the Matter of TCI 2 Holdings, LLC
Bankruptcy court considers key valuation evidence—including total enterprise value, cost of debt, debt service capacity, and capex/EBITDA proections—in confirmation of reorganization plan for Trump casinos.
Vision-Park Properties v. Seaside Engineering
District court finds unique risks facing debtor in bankruptcy and emerging from it justify Bankruptcy Court’s increase of proposed discount rate and record supports confirmation of reorganization plan.
H.G. Roebuck & Son, Inc. v. Alter Communications
Federal district court reverses bankruptcy court’s confirmation of debtor’s exclusive reorganization plan, finding that expert valuation does not satisfy requirement for actual market valuation under new value exception to absolute priority rule.
In re Emerge Energy Services LP
Ruling on plan confirmation, Bankruptcy Court finds debtor expert’s determination of total enterprise value of reorganized debtor more credible than unsecured creditors’ expert; in adopting debtor expert’s comparable company analysis, court calls choice of comparables set a “key value driver.”
In re Genco Shipping & Trading Ltd.
In fight over plan confirmation, court finds nature of industry supports debtors’ reliance on net asset value approach to value Chapter 11 dry bulk shipper but not to the exclusion of more traditional methods; however, court rejects use of DCF.
In Re S-Tek 1, LLC
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).
5th Circuit Reverses McCord, Confirming Original Valuation of Marketability Discounts
5th circuit overturns McCord v. Comm’r (Tax Court, 2003) and confirms calculation of marketability discounts in complex gift tax case.
Going Concern Value used in Bankruptcy Proceeding
The Bankruptcy Court for the Northern District of Indiana declined to confirm a debtor-dentist's chapter 13 reorganization plan because the plan valued his practice at its liquidation value. Under the plan, the debtor would retain the practice and use its ...
Personal Goodwill Deemed Corporate Asset in Chapter 11 Bankruptcy Reorganization
Dr. Prince operated his orthodontics practice as a wholly owned professional corporation.
In re Harper
The valuation of a minority interest in a closely held family corporation was in question in this bankruptcy case.
Tribune Bankruptcy Court Prefers Current Data to Fill Valuation ‘Chasm’
Bankruptcy court declines to confirm competing reorganization plans for billion dollar publishing conglomerate, in part based on flawed valuations from both parties.
8th Circuit Upholds Use of Preconfirmation Value
The bankruptcy court adopted a reorganization plan over the debtors' objection. The debtors appealed to the U.S. District Court, which upheld the bankruptcy court.
Bankruptcy Court Erred in Undervaluing Appellant's Collateral
Debtors Peter and Un Kim filed a Chapter 13 bankruptcy plan treating appellant Ardmor Vending Co. dba Great Northern as partially secured ($34,000) and the Ardmor Profit Sharing Plan as wholly unsecured.
Regulatory Issue Causes Bankruptcy Valuation to Falter
Court praises debtors’ expert valuation of wireless venture’s spectrum but says the determination improperly assumes FCC license approval where the agency’s decision is uncertain; lacking reliable asset value, court rejects reorganization plan.
Market Rate of Interest Appropriate in 'Cram-Down' Case
The key issue in this case is setting the appropriate interest rate to establish present value in a "cram down" situation under 11 U.S.C. 1325(a)(5)(B).
Lender Uses Debtor’s Own Appraiser to Show Plan Lacks Financial Feasibility
Lender uses cash flow projections by the debtors’ appraiser to show that the proposed reorganization plan for two golf clubs is unfair and not feasible.
Value of Recovery under Sec. 550 May Be Greater than the Value of the Asset Fraudulently Transferred at the Time of the Transfer
The U.S. Court of Appeals for the Tenth Circuit considered the recovery of the value of an asset that was fraudulently transferred under sec. 550 of the Bankruptcy Code when the asset increases in value following the transfer. The alleged fraudulent trans ...
3rd Circuit Confirms DCF to Value Mortgage Portfolios in Dysfunctional Markets
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.
Bankruptcy Court Rejects DCF for Troubled Company
Bankruptcy court rejects DCF analysis in valuation of early-stage mobile satellite systems provider, preferring comparable company analysis provided the debtors’ expert.