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Determining Value – Choosing a Business Appraiser

Don’t Leave Valuation to Chance Valuation is the determination of the worth of an entity or item. According to Erin Hollis “A valuation can be as loose as a guess, to a ‘back of the envelope’ calculation, to a formal opinion rendered by a third-party professional business valuation expert”. Having the right valuation of your […]

When Your Borrower Files for Bankruptcy (DIP Financing, Cash Collateral, and Adequate Protection)

What you need to know as a secured lender to a borrower who goes into bankruptcy you should know already, well in advance. If your borrower’s bankruptcy filing has taken you by surprise, please refer to my next article in this series, in which I will discuss the tactics and strategies in the contested case […]

From Penthouse to Ground Floor – The Penthouse Magazine Bankruptcy

The Life, Death and Many Reincarnations of Penthouse Magazine Penthouse International, publisher of Penthouse Magazine, sold for $11.2 million in June. The company was worth about $700 million (adjusted for inflation) at its height. The latest Penthouse Magazine bankruptcy highlights just how far Penthouse has fallen. The New Owner The buyer was WGCZ, which also owns […]

What’s the Difference Anyway? Oil and Gas Business Valuation Differentiated

Even for professionals who are well versed in business valuation theories and approaches, valuations in the oil and gas industry offers challenging issues.  This article provides a quick review of general valuation approaches and highlights some key characteristics and nuances of oil and gas valuations. Valuation Approaches Generally, the most common valuation approaches are: The […]

Limiting Credit Bidding “For Cause” After In re Aeropostale

Section 363(k) of the Bankruptcy Code (the “Code”) allows a secured creditor to bid at a section 363 sale and use the amount of their claim to offset the purchase price at the sale, called “credit bidding.”[2]   A court may limit this right “for cause.”[3]  The “for cause” standard is not defined in the Code […]

Determining the Collateral Value of a Secured Claim

Editor’s Note: You may also find Valuing Lost Profit for Litigation Purposes Webinar and Selecting the Right Valuation Expert Webinar to be informative. The question of why we need to know the collateral value of a secured claim seems quite obvious when a secured creditor may be under-secured—the absolute priority rule of the bankruptcy code dictates […]

More on Salon – Applying a Valuation in Bankruptcy

 Now, we return to our case study of Salon Media Group with an eye towards developing a thesis and applying valuation methodologies discussed in an earlier article in this series here. There are, as I mentioned in my previous article on Salon, large issues of concern with the current stock offering. Given that insiders have […]

Introduction to Distressed Analysis – Developing Your Investment Thesis and Valuation Methods

Ok, time for a more in depth look at making a thesis and a valuation. From the outset, I want to underscore a point raised in my previous article here, that most investors will want to enter the distressed investing space by relying on the expertise of various funds that focus on these types of investments. Thus, I’ll first address here the […]

ABI Commission Report on Chapter 11 Reforms—More Hope in Sight for the Little Guy?

Among a number of issues addressed by an American Bankruptcy Institute Commission tasked with making recommendations to the federal legislature regarding bankruptcy law was a subject that has been on the minds of many bankruptcy professionals over the last few years. It is also certainly a subject that has been on the minds of countless […]