The Statutory Definition of “Insolvent”– Part One
Co-Authored by Andrea Saavedra In our Slice of the Pie series, we’ll explore those sections of the Bankruptcy Code that implicate valuation. The series will also report on current cases where these...
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The Statutory Definition of “Insolvent” – Part Two – Chapter 9 Debtors
Co-Authored by Andrea Saavedra As a follow up to our first post on the Bankruptcy Code’s definition of insolvency as applied to corporate debtors, we now turn our exploratory lens towards the...
View ArticleValuing Secured Claims: The Importance of Credible Testimony and Postpetition...
Last month, the United States Bankruptcy Court for the Northern District of Iowa in In re Civic Partners Sioux City, LLC denied confirmation of a chapter 11 debtor’s plan of reorganization, in part,...
View ArticleGot Milk? Apparently Not Enough for This Dairy Producer. Court Denies...
When are projections so optimistic that a chapter 11 plan cannot be confirmed? As the debtor in In re Friendship Dairies found out the hard way, when the projections start faltering right out of the...
View ArticleUnreasonably Small Capital
Contributed by Andrea Saavedra In previous posts in our Slice of the Pie series, we examined the statutory definition of insolvency as applicable to corporate and municipal debtors, exploring the...
View ArticleMass Tort Bankruptcies and Valuation Considerations in the Claims Estimation...
Contributed by Andrea Saavedra In our previous entries in the Slice of the Pie series, we explored the art of valuation and the role of the artist, or valuation expert, in assisting a court’s...
View ArticleAlways Sunny In Adelphia – Bankruptcy Court Rejects DCF with Unreliable...
As we’ve noted on several occasions, parties in interest in a bankruptcy case generally hope for “big money – no whammies” (“Think of Thanksgiving. Everyone wants the biggest turkey possible (except,...
View ArticleGenco: Dry Bulk Shipping Valuations No Longer Anchored to Discounted Cash...
Discounted cash flow analysis is a mainstay among the valuation methodologies used by restructuring professionals and bankruptcy courts to determine the enterprise value of a distressed business....
View ArticleGenco: Future Earnings? That Was Then; This Is Now
Bankruptcy courts typically rely on three valuation methods to determine a debtor’s enterprise value: comparable company analysis, precedent transaction analysis, and discounted cash flow analysis. As...
View ArticleIn Assessing Solvency, Beware the Unknown Unknowns
Donald Rumsfeld might sum up a recent decision by Judge Isgur out of the United States Bankruptcy Court for the Southern District of Texas as follows: “We also know there are known unknowns; that it to...
View ArticleA Statutory Review of Bankruptcy Valuation Issues
Contributed by Andrea Saavedra Valuation issues arise at every stage of a large chapter 11 case. While many articles are devoted to the role of financial analysts (and, indeed, the American Bankruptcy...
View ArticleCovenant of Good Faith and Fair Dealing Examined: La Paloma
On January 13, 2020, the United States Bankruptcy Court for the District of Delaware issued an opinion in In re La Paloma Generating Company, LLC., Case No. 16-12700 [Adv. Pro. No.19-50110], which...
View ArticleTransferring Personally Identifiable Information in Bankruptcy M&A – Part 1
With data privacy issues constantly in the news, what do businesses need to know about handling personal information when they’re considering bankruptcy, especially if some personal information – like...
View ArticleTransferring Personally Identifiable Information in Bankruptcy M&A – Part 2
With data privacy issues constantly in the news, what do businesses need to know about handling personal information when they’re considering bankruptcy, especially if some personal information – like...
View ArticleThird Circuit Decision Provides New Guidance on the Unfair Discrimination...
In an important decision issued at the end of August, the United States Court of Appeals for the Third Circuit, in In re Tribune Co., Case No. 18-2909 (3d Cir. Aug. 26, 2020), held that subordination...
View ArticleEastern District of Virginia Bankruptcy Court Finds Landlord’s Lender Has No...
OVERVIEW In a recent decision, In re Le Tote, Inc., No. 20-33332-KLP, 2020 Bankr. LEXIS 3044 (Bankr. E.D. Va. Oct. 30, 2020), the Bankruptcy Court for the Eastern District of Virginia held that a trust...
View ArticleYeah, We Can Take It – Texas Bankruptcy Court Defines the Scope of Its...
Executive Summary A recent decision from the United States Bankruptcy Court for the Northern District of Texas, In re Care Ctrs., LLC, No. 18-33967, 2020 Bankr. LEXIS 3205 (Bankr. N.D. Tex. Nov. 12,...
View ArticleWarning to Directors of Selling Companies: Breach of Fiduciary Duty Liability...
A recent ruling from the United States District Court for the Southern District of New York sent shock waves through the legal and financial community, with some shouting that this “could be a...
View ArticleTenth Circuit BAP Decision Authorizes Claim for Postpetition Interest Under...
In a recent decision, Twiford Enters. v. Rolling Hills Bank & Trust (In re Twiford Enters.), 2020 Bankr. LEXIS 2964, 2020 WL 6075691 (10th Cir. BAP 2020), the Tenth Circuit Bankruptcy Appellate...
View ArticleAttention Buyers of Assets in Bankruptcy: How To Be A Good Faith Purchaser...
Introduction Two recent district court decisions, each involving appeals of a bankruptcy sale order where the appellant(s) failed to obtain a stay pending appeal, provide insight into statutory...
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