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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Tax Court Rejects Pre-IPO Studies, Finds DLOM Accounts for More Than Illiquidity
Petitioners Charles T. and Mary S. McCord gifted interests in McCord Interests Ltd. LLP (MIL) to their four children, trusts for the benefit of the children, and two charitable organizations by way of assignment agreements.
Court Approves Debtor’s ‘Feasible, But Tight’ Plan With 6% Interest Rate
In Chapter 11 proceeding, Bankruptcy Court approves debtor hotel owner’s reorganization plan over objection of creditor that holds both secured and unsecured claims; applying the “Till formula approach,” the court decides the plan’s proposed 6% “cramdown”
Market Approach Applied in Dissenting Shareholders Valuation
In Enterprise Payment Solutions Inc., et al. v. Soft Tracks Enterprises, Ltd., et al., 2005 BCSC 572, decided April 15, 2005, the Supreme Court of British Columbia considered the determination of fair value in this dissenters’ rights action. The plaintiff ...
Court Rebuffs Attempt to Allocate Excess Value to Intangible Assets
Bankruptcy Court rejects proposition that sales price increase has to be attributed to one debtor’s business, as goodwill, because other debtor’s real property allegedly remains constant in value; court denies request to change allocation of proceeds.
‘Modified’ Georgia-Pacific Analysis Applies to Post-Verdict Royalties
Court applies modified Georgia-Pacific analysis—including changed economic circumstances between the parties as well as changes in patent law—to determine post-verdict, ongoing reasonable royalty rate.
Another Bad Facts FLP—and Why Appraisers Should Care
What appraisers should know about another "bad facts" FLP.
Bankruptcy Expert Claims DCF Indicates Market Value Better Than the Market
Court authorizes $1.1 billion asset sale of the debtors, despite DCF by lenders’ expert that shows $13.8 billion value.
Securities Plaintiffs Need Expert to Prove FAS 157 Impairment Claims
Court finds that Morgan Stanley failed to disclose its subprime exposure and losses but dismisses complaint for lack of adequate allegations of loss causation, with leave to file amended claims.
Lost Value Opinion Using Untested Data Points Is No Go
Court excludes lost value opinion from expert who was versed in business valuation, but unfamiliar with scientific damages methodologies and did not test reliability of sources providing data points for damages calculations.
Tax Court Resolves ‘Mismatch’ Between FLP Values and Marital Deduction
On a motion for reconsideration, Tax Court finds no new evidence or rationale to reverse its prior opinion, which included the value of family limited partnership assets in the gross estate; it also found the estate was not entitled to claim the marital d ...
Creditors’ Valuation Spoils Diminution in Value Claim
Ruling on the adequate protection claim of junior secured noteholders (JSNs) in a complex bankruptcy proceeding, court finds JSNs failed to prove a diminution in the value of their cash collateral during case; flawed assumptions and inputs invalidate the ...
In re T-H New Orleans Limited Partnership, debtor
The U.S. Court of Appeals for the Fifth Circuit concluded the valuation date of the debtor's secured assets should be flexible when the debtor's assets are increasing in value and the creditors' claims are decreasing in amount so that the creditor may bec ...
In re Case No. 800 Bourbon St.
Bankruptcy Court rejects proposition that sales price increase has to be attributed to one debtor’s business, as goodwill, because other debtor’s real property allegedly remains constant in value; court denies request to change allocation of proceeds.
In re PieceGoods Shops Co.
At issue was the reasonableness of the equity value determined and whether it met the “best interests” test.
In re Civic Partners Sioux City, LLC
The Bankruptcy Court finds the debtor’s reorganization plan is not feasible because it fails to provide enough funds to pay in full the primary creditor’s secured claim; the plan rested on an improperly low valuation of the property that makes up the majo ...
In re Fairvue Club Properties
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.
In Re: LMR, LLC
In Chapter 11 proceeding, Bankruptcy Court approves debtor hotel owner’s reorganization plan over objection of creditor that holds both secured and unsecured claims; applying the “Till formula approach,” the court decides the plan’s proposed 6% “cramdown”
In re: LightSquared Inc.
FOR PUBLICATION UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ) In re: ) Chapter 11 ) LIGHTSQUARED INC., et al., ) Case No. 12-12080 (SCC) ) Debtors. ) Jointly Administered ) ) DECISION DENYING CONFIRMATION OF DEBTORS THIRD AMENDED JOINT PLAN PURSUANT TO CHAPTER 11 OF BANKRUPTCY CODE 12-12080-scc Doc 1631-1 Filed 07/11/14 Entered 07/11/14 15:10:57 Main Document Pg 1 of 73 1 A P P E A R A N C E ...
In re Dawes
At issue is the valuation of the equity holder's interest in the debtor's company.
Albaad USA, Inc. v. GPMI, Co. (In re GPMI, Co.)
The debtor was a manufacturer of wet wipe cleaning products. It contracted with a new customer to manufacture wipes for the customer in the U.S. and to sell such wipes to the new customer. The customer failed to obtain EPA and state-level product registrations and refused to purchase manufactured wipes or to honor its commitments regarding loans to the debtor for new equipment leases and other costs to expand the debtor’s facilities to meet the demands of the contracts. The debtor ultimately filed for bankruptcy and delivered a Chapter 11 plan that included selling its assets. The Bankruptcy Court approved the plan. The creditor appealed the approval of the plan, but the appeals panel affirmed.
McCord v. Commissioner (II)
Fifth circuit overturns McCord v. Comm’r (Tax Court, 2003), and confirms calculation of marketability discounts in complex gift tax case.
In re Westpointe
At issue is the valuation of the bankruptcy estates.
In re Village at Camp Bowie I, L.P.
Bankruptcy court finds “cramdown” interest rate equals at least 6.4%, based on current commercial lending “realities” as well as expert’s application of debtor-specific risk factors, including benefits of bankruptcy and single lender.
In re Cole
Bankruptcy Court says differing standard of value in divorce and bankruptcy proceedings precludes use of divorce valuation of husband’s interest in dental practice; but valuation based on shareholder agreement accords with Chapter 7 liquidation analysis.
In re Platinum Corral, LLC
The Bankruptcy Court turned down a plan and amended plan of reorganization primarily because only the debtor would benefit from the plan and creditors would be left with little or no return. The court ordered a new plan be delivered to the court as soon as possible because time was of the essence.