In re Burg
The debtor withheld records and failed to explain missing assets and deleted records and misled the court as to what he did with certain assets. The debtor also knowingly and fraudulently withheld records from the trustee. This was all part of a scheme the debtor devised with the help of a “consultant” to avoid repaying the plaintiff creditors.
Bankruptcy Court Denies Debtor Discharge for Fraud, Failure to Produce Records and Fraudulent Transfers
The debtor withheld records and failed to explain missing assets and deleted records and misled the court as to what he did with certain assets. The debtor also knowingly and fraudulently withheld records from the trustee. This was all part of a scheme the debtor devised with the help of a “consultant” to avoid repaying the plaintiff creditors.
Bankruptcy Appeals Panel Affirms Confirmation of Chapter 11 Plan Despite Objection of Largest Unsecured Creditor
The debtor was a manufacturer of wet wipe cleaning products. It contracted with a new customer to manufacture wipes for the customer in the U.S. and to sell such wipes to the new customer. The customer failed to obtain EPA and state-level product registrations and refused to purchase manufactured wipes or to honor its commitments regarding loans to the debtor for new equipment leases and other costs to expand the debtor’s facilities to meet the demands of the contracts. The debtor ultimately filed for bankruptcy and delivered a Chapter 11 plan that included selling its assets. The Bankruptcy Court approved the plan. The creditor appealed the approval of the plan, but the appeals panel affirmed.
Albaad USA, Inc. v. GPMI, Co. (In re GPMI, Co.)
The debtor was a manufacturer of wet wipe cleaning products. It contracted with a new customer to manufacture wipes for the customer in the U.S. and to sell such wipes to the new customer. The customer failed to obtain EPA and state-level product registrations and refused to purchase manufactured wipes or to honor its commitments regarding loans to the debtor for new equipment leases and other costs to expand the debtor’s facilities to meet the demands of the contracts. The debtor ultimately filed for bankruptcy and delivered a Chapter 11 plan that included selling its assets. The Bankruptcy Court approved the plan. The creditor appealed the approval of the plan, but the appeals panel affirmed.
The Long Arm of the Bankruptcy Court: Valuation in Fraudulent Transfer Matters
When a company files for bankruptcy, the first analysis is to determine what the company has and what the company owes as of the filing date. Next is a thorough analysis of what had been paid out of the company before the filing date to determine whether such payments can be clawed back into the estate for the benefit of creditors. Payments made within 90 days of the filing may automatically be considered preferential. Beyond ...
How Recent Insolvency Reform in the UK Impacts Business Valuations
Driven by the pandemic, the Corporate Insolvency and Governance Act (CIGA) 2020 is the largest reform to insolvency law in the United Kingdom in over 20 years. Although targeted to large companies, the impact on business valuation methods and standards will likely trickle down to smaller firms.
BV News and Trends June 2021
A monthly roundup of key developments of interest to business valuation experts.
New edition of BVR’s Bankruptcy Case Law Compendium
Virtually every bankruptcy case is intertwined with valuation issues at almost every stage of the process, which is why BVR’s Business Valuation & Bankruptcy: Case Law Compendium, 3rd edition, is a must-have resource.
BVU News and Trends February 2021
A monthly roundup of key developments of interest to business valuation experts.
Choose Your Client Wisely in a Bankruptcy Engagement
Robert Reilly (Willamette Management Associates) and Josh Shilts (Shilts CPA) conducted an informative session on valuations for bankruptcy at the AICPA FVS Conference.
‘Plenty of room' for new experts in bankruptcy valuations, says Reilly
There is “plenty of room in the bankruptcy discipline for new practitioners,” says Robert Reilly (Willamette Management Associates), who co-presented a session at the recent AICPA FVS Conference with Josh Shilts (Shilts CPA).
New ‘Subchapter V’ bankruptcies gain steam
Valuations have always been a crucial element in bankruptcies.
Small Business, Bankruptcy and Business Valuation
The Small Business Restructuring Act makes Chapter 11 reorganization proceedings faster, cheaper and more efficient for companies that come to Bankruptcy Court with debts below the statutory cap. That may allow certain small business to survive the current turmoil resulting from the corona virus pandemic. What is, however, not yet clear is the role of business valuators in the process. Michael Pakter explains what that role might be.
In re Body Transit
Court finds creditor’s interest in debtor’s property is “inconsequential” and says a valuation of debtor’s fitness club must account for dismal state of fitness industry due to COVID-19 shutdown; debtor’s projections related to reorganization plan are too optimistic given economic uncertainty.
Court Finds Valuation of Debtor Entity Must Account for COVID-19 Effect on Industry
Court finds creditor’s interest in debtor’s property is “inconsequential” and says a valuation of debtor’s fitness club must account for dismal state of fitness industry due to COVID-19 shutdown; debtor’s projections related to reorganization plan are too optimistic given economic uncertainty.
Important bankruptcy ruling on how to value oil and gas assets
Valuing oil and gas assets requires special expertise, as is evident from a recent bankruptcy ruling that includes a thorough examination of the parties’ valuation evidence.
Court Credits Debtor’s Asset Valuations but Rejects Chapter 11 Plan
Court finds debtor is hopelessly insolvent; court values two types of oil and gas assets under NAV and precedent transaction analyses, respectively, finding, in terms of NAV analysis, debtor’s expert is more credible on issues of pricing, forecasting, risking, and predicting costs.
In re Breitburn Energy Partners LP
Court finds debtor is hopelessly insolvent; court values two types of oil and gas assets under NAV and precedent transaction analyses, respectively, finding, in terms of NAV analysis, debtor’s expert is more credible on issues of pricing, forecasting, risking, and predicting costs.
Why Divorce Valuation Does Not Accord With Chapter 7 Liquidation Analysis
Bankruptcy Court says differing standard of value in divorce and bankruptcy proceedings precludes use of divorce valuation of husband’s interest in dental practice; but valuation based on shareholder agreement accords with Chapter 7 liquidation analysis.
In re Cole
Bankruptcy Court says differing standard of value in divorce and bankruptcy proceedings precludes use of divorce valuation of husband’s interest in dental practice; but valuation based on shareholder agreement accords with Chapter 7 liquidation analysis.
Bankruptcy Court Accepts Rationale for Tax Affecting
In a fraudulent transfer case involving S corp, court says valuation should reflect that buyers of S corps would experience a reduction in the value of the corporations' earnings because of the need to pay personal income taxes on those earnings.
Bank of America, N.A. v. Veluchamy (In re Veluchamy)
In a fraudulent transfer case involving S corp, court says valuation should reflect that buyers of S corps would experience a reduction in the value of the corporations' earnings because of the need to pay personal income taxes on those earnings.
Regulatory Issue Causes Bankruptcy Valuation to Falter
Court praises debtors’ expert valuation of wireless venture’s spectrum but says the determination improperly assumes FCC license approval where the agency’s decision is uncertain; lacking reliable asset value, court rejects reorganization plan.
In re: LightSquared Inc.
FOR PUBLICATION UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ) In re: ) Chapter 11 ) LIGHTSQUARED INC., et al., ) Case No. 12-12080 (SCC) ) Debtors. ) Jointly Administered ) ) DECISION DENYING CONFIRMATION OF DEBTORS THIRD AMENDED JOINT PLAN PURSUANT TO CHAPTER 11 OF BANKRUPTCY CODE 12-12080-scc Doc 1631-1 Filed 07/11/14 Entered 07/11/14 15:10:57 Main Document Pg 1 of 73 1 A P P E A R A N C E ...