Stadtmueller v. Fitzgerald (In re Epic Cycle Interactive, Inc.)
Bankruptcy court finds expert’s analysis “blurred the line” between going concern and liquidation value, detracting from opinion’s credibility; but court approves of expert’s “precise” time frame for capturing data with which to determine solvency.
Adelphia Recovery Trust v. FPL Group, Inc. (In re Adelphia Corp.)
Court finds trust failed to prove insolvency; its expert’s use of DCF alone was inappropriate where there were no cash flow projections untainted by fraud, but competing expert’s market-based approach and value per subscriber analysis were solid.
Antioch Co. Litig. Trust v. Morgan
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.
In re Mercury Companies, Inc. (I)
For reasonably equivalent value determination, Bankruptcy Court finds contract price and values from experts’ discounted cash flow analyses are too limiting and applies totality of circumstances test, concluding stock transfer is not avoidable.
Expert’s Market-Based, ‘Self-Contained’ Solvency Analysis Crumbles
Bankruptcy Court discredits defendant experts’ “self-contained,” market-oriented solvency analysis finding his DCF analysis relied on inflated, “sell-side” company projections and his comparable analyses used insufficiently similar companies and transacti ...
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.
Dietz v. Jacobs
Court finds solvency analysis is not subject to AICPA’s valuation standards and admits expert’s claim that “magnitude of excess” reflected in adjusted balance sheet numbers means assets exceeded liabilities.
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 ...
Plan Confirmation Hinges on Property Valuation
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 ...
Bankruptcy Court Wary of Asset Approach in Solvency Analysis
Bankruptcy Court values Chapter 11 debtor on a going concern basis and finds the income approach is best suited to determine solvency at the time of critical financial transactions; the defendants’ expert properly relied on a contemporaneous Goldman Sachs ...
In re Tronox Incorporated
Bankruptcy Court discredits defendant experts’ “self-contained,” market-oriented solvency analysis finding his DCF analysis relied on inflated, “sell-side” company projections and his comparable analyses used insufficiently similar companies and transacti ...
Court Bristles at Experts’ Hasty Valuation of Debtor
Bankruptcy court denies shareholders’ renewed request for an equity committee, finding neither the debtor nor its creditors are hiding value in their calculation of the total equity value of less than $500 million; expert testimony as to the allegedly und ...
In re Residential Capital, LLC
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 ...
Trustee Claims Bankruptcy Court Flouted Valuation Rules
District court affirms bankruptcy court’s valuation of hospital under income approach and finds its treating a $20.6 million capital transfer as surplus rather than a necessary asset for operations is not double counting and is reasonable under the facts ...
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 ...
What ‘FMV’? Bankruptcy Court Restricts Car Dealer’s Damages
Bankruptcy court finds car dealer’s claim for fair market value of its franchise based on state law dealer statute is invalid under Bankruptcy Code; expert testimony only supports past lost profit damages for cars and parts and accessories in stock at tim ...
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”
In re Eastman Kodak Company
Bankruptcy court denies shareholders’ renewed request for an equity committee, finding neither the debtor nor its creditors are hiding value in their calculation of the total equity value of less than $500 million; expert testimony as to the allegedly und ...
Alberts v. HCA, Inc.
District court affirms bankruptcy court’s valuation of hospital under income approach and finds its treating a $20.6 million capital transfer as surplus rather than a necessary asset for operations is not double counting and is reasonable under the facts ...