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.
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.
Expert’s ‘Hyperbole’ in Article Comes Back to Haunt in Daubert Hearing
Bankruptcy court denies Daubert motion and grants summary judgment based largely on expert insolvency analysis, despite “professional” disagreement on data used to calculate small stock premium, cost of debt, and company-specific risk premium.
Valuing Two Tough Aspects of Damages: Pricing and Discount Rate
Bankruptcy court finds that the discount rate related to a contract damages claim should incorporate the risk factors present at the time of contract execution, making risk-free rate inappropriate.
‘Most Reliable, Least Speculative’ Valuation Prevails in Bankruptcy
Federal district court affirms bankruptcy court’s solvency and “reasonably equivalent value” analysis based on more credible, substantive evidence from debtor’s expert.
In re Terrestar Networks, Inc.
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 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.
Nelson v. Walnut Investment Partners
Bankruptcy court denies Daubert motion and grants summary judgment based largely on expert insolvency analysis, despite “professional” disagreement on data used to calculate small stock premium, cost of debt, and company-specific risk premium.
Six Valuation Experts Try to Show Barclays Reaped a Windfall in Lehman Sale
Bankruptcy court denies Lehman Brother’s motion to reconsider billion-dollar distressed sale of brokerage assets during financial meltdown of September 2008, based in part on expert evidence that showed Barclays did not receive a $13 billion “windfall.”
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.
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.
Management Projections, DCF Discount Rate, and More Are Key to Bankruptcy Valuation
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.