Court Credits Expert’s Cash Flow Analysis in Solvency Determination
Bankruptcy Court credits trustee’s expert’s cash flow analysis in finding “billionaire” debtor was insolvent at the time she signed a guarantee for a $13 million loan defendant made to her son; because the transfer was fraudulent, the court sets aside the ...
Whyte v. C/R Energy Coinvestment II, L.P. (In re SemCrud)
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: American Suzuki Motor Corporation
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 ...
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”
Expert’s ‘Unsupportable’ Inputs Undermine DCF Analysis and Credibility
District court finds expert “forced” spun-off company’s low value by calculating a DCF value that “is low in the extreme and implied an incredibly low trading multiple for the [subject]”; the expert selected “the most pessimistic projections” of future pe ...
Expert May Use Public Information for Company Valuation
Federal court admits experts’ determination of company’s capitalization based on publicly available information under Daubert, stating that even though using this type of information is not the preferred method, it may be acceptable when the company’s sto ...
Samson v. Western Capital Partners LLC (In re Blixseth)
Bankruptcy Court credits trustee’s expert’s cash flow analysis in finding “billionaire” debtor was insolvent at the time she signed a guarantee for a $13 million loan defendant made to her son; because the transfer was fraudulent, the court sets aside the ...
Bankruptcy Court Discredits DCF as ‘Easily Manipulated’
Bankruptcy court disapproves of DCF method as lending itself to manipulation, noting rivaling experts’ “strikingly” divergent valuations despite reliance on basically the same data and analysis.
U.S. Bank N.A. v. Verizon Communications Inc.
District court finds expert “forced” spun-off company’s low value by calculating a DCF value that “is low in the extreme and implied an incredibly low trading multiple for the [subject]”; the expert selected “the most pessimistic projections” of future pe ...
Expert Valuation More Credible & Critical Than Contemporaneous Market & Management Values
Federal district court affirms bankruptcy court’s avoidance of the debtor’s $17.5 million purchase of failing company, based in large part on evidence by trustee’s expert that the debtor was insolvent at the time and the target company was worthless.
6th Circuit Upholds Using Post Hoc Comparable Transaction
Sixth Circuit finds expert’s examination of post-hoc transaction in using market approach did not involve improper hindsight.
Superior Offshore International, Inc. v. Schaefer
Federal court admits experts’ determination of company’s capitalization based on publicly available information under Daubert, stating that even though using this type of information is not the preferred method, it may be acceptable when the company’s sto ...
Flawed Expert Opinion Drastically Diminishes Plaintiff’s Lost Profits
Bankruptcy court substantially reduces plaintiff’s damages claim based largely on expert’s failure to independently verify assumptions regarding defendant’s alleged theft of trade secrets on lost profits and lost sales.
Valuing Contingent Liability in Bankruptcy Precludes GAAP Standard
In fraudulent conveyance suit, bankruptcy court admits expert’s testimony on reasonable compensation as it relates to reasonably equivalent value for the debtor law firm’s payment of its partners’ income taxes, but strikes insolvency expert’s opinion for ...