In re Iridium Operating LLC
Bankruptcy court confirms that the market price of a public company is the more reliable measure of equity value than experts’ “subjective” estimates, particularly when they do not adequately explain, rebut, or analyze contemporaneous market valuations.
In re Bachrach Clothing, Inc.
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.
In re Certified HR Service Co. (II)
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.
In re Global Technovations, Inc. (III)
Sixth Circuit finds expert’s examination of post-hoc transaction in using market approach did not involve improper hindsight.
Cost Method ‘Strikingly Inappropriate’ to Value Technology
In fraudulent conveyance suit, federal bankruptcy court rejects cost approach and “hypothetical capitalization of income approach” to value a unique technology that nevertheless never made any profit in the history of the debtor’s business.
In re Jonatzke
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.
Bakst v. United States of America (In re: Kane & Kane)
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 ...
Holber v. M&T Bank (In re Scheffler)
In fraudulent conveyance suit, federal bankruptcy court rejects cost approach and “hypothetical capitalization of income approach” to value a unique technology that nevertheless never made any profit in the history of the debtor’s business.
Bankruptcy Court Exposes ‘Perils’ of DCF Without Good Expert Evidence
In fraudulent conveyance action, court admits errors in its own discounted cash flow valuation of hospital, but denies motion to reconsider, finding the trustee has the burden to present competent expert evidence regarding reasonably equivalent value.
Certain Intangibles Only Have Value in Ongoing Business
Bankruptcy court discredits intangible asset appraisal of debtor’s patents, unpatented know-how, customer relationships, and trademarks, finding these have no value apart from an ongoing business concern.
Court Adopts Expert’s Interest Rate, Based in Part on Butler Pinkerton Calculator
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 Greater Southeast Community Hospital Corp. (III)
In fraudulent conveyance action, court admits errors in its own discounted cash flow valuation of hospital, but denies motion to reconsider, finding the trustee has the burden to present competent expert evidence regarding reasonably equivalent value.
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.
WaMu Bankruptcy Court Credits the More ‘Complete’ Valuation
Federal bankruptcy court criticizes debtors’ valuation of its proposed reorganization for being too low and plan objectors value for being too high, ultimately crediting the debtors’ more “complete” valuation, with adjustments.
Pryor v. Tiffen (In re TC Liquidations LLC)
Bankruptcy court discredits intangible asset appraisal of debtor’s patents, unpatented know-how, customer relationships, and trademarks, finding these have no value apart from an ongoing business concern.
In re Tribune Co.
Bankruptcy court declines to confirm competing reorganization plans for billion dollar publishing conglomerate, in part based on flawed valuations from both parties.
Security Interest Exists in Economic Value of FCC License
Bankruptcy court holds that a security interest may exist in the economic value of an FCC license, despite federal law precluding the granting of a collateral interest in the license itself.
In re Washington Mutual, Inc.
Federal bankruptcy court criticizes debtors’ valuation of its proposed reorganization for being too low and plan objectors value for being too high, ultimately crediting the debtors’ more “complete” valuation, with adjustments.
In re Certified HR Service Co. (I)
Bankruptcy court permits trustee to avoid 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.