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 ...
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”
New case digests added to BVLaw in the last weeks
The following is a sampling of court decisions in which determination of the value of a business was essential to the result. Many of the leading financial experts and business appraisers were involved as consultants or expert witnesses in these matters. BVLaw digests all cases where valuation methodologies or competing approaches are adjudicated.
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.
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.