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Valuation

bankruptcy for litigation advantage

Strategic Filing: Chapter 11 Bankruptcy for Litigation Advantage?

It Depends on the Facts Debtors often use Chapter 11 bankruptcy for litigation advantages. Whether or not they succeed depends on the facts and circumstances of the individual bankruptcy case. The following sample case helps to illustrate how a court may rule. Case Study Catherine, Jules, and Jim founded and each owned one-third of a […]


Tsunami of Executory Contracts

Analyzing Executory Contracts: Can AI Save Us from The Contract Tsunami?

The Overlooked (Giant) Asset Class: Executory Contracts In today’s world, one of the most important sources of assets and liabilities for a debtor is its executory contracts. Companies that were once heavy with assets and employees now have a much lighter balance sheet accompanied by many more business agreements enabling (or causing) them to utilize […]


Chilled bidding

Limiting Credit Bidding in Section 363 Bankruptcy Sales Post-In Re Aéropostale, Inc.

Chilled Credit Bidding and the Section 363 Sale 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.” A court may limit this right “for cause.” The “for […]


Kuney’s Corner: The Secured Creditor’s Counter Strike – Section 1111(b) Election

Section 1111(b) Election: A Countermeasure for Undersecured, Secured Creditors   Mathew 5:29 – And if thy right eye offend thee, pluck it out, and cast it from thee: for it is profitable for thee that one of thy members should perish, and not that thy whole body should be cast into hell. In a previous […]


Example of substitute collateral with apple and orange

Kuney’s Corner – Giving Secured Creditor Substitute Collateral in a Chapter 11 Cramdown

Pacifying a Hostile Lender with a Motion to Substitute Collateral  Can a Chapter 11 debtor confirm a plan that gives a hostile secured creditor a lien on an orange as a substitute, in essence, for the secured creditor’s lien on an apple that the debtor wants to keep and use?1 Yes, a motion to substitute […]


How to read a balance sheet

Finding Truth in a Debtor’s Balance Sheet: Analyzing Assets, Liabilities and Equity

How to Read a Balance Sheet Beyond Surface Level A balance sheet provides a snapshot of a company’s financial condition as of a specific date by presenting three components: assets, liabilities and equity.  While a balance sheet may help its user to evaluate a company for stability, investment potential, and creditworthiness, it should not be […]


Calculating valuation methods

Introduction to Distressed Debt Analysis: 4 Company Valuation Methods for Investors

How You Can Use Your Personal Experience and Expertise to Formulate and Investment Thesis   It’s time to take an in-depth look at distressed debt investing and how you can use your personal experience in conjunction with company valuation methods to make decisions. Most investors will want to enter the distressed investing space by relying […]


Property appraiser with clipboard in warehouse

Personal Property Appraisals 101

What You Should Know Before Hiring a Property Appraiser Are you a lender who needs an appraisal of personal property (machinery, equipment and inventory) in connection with making a loan? Are you a company that needs an appraisal in connection with a capital raise, or some other purpose? Regardless of the reason, there are some […]


Man feeding chicken

Determining the Collateral Value of a Secured Claim

Knowing Collateral Value Helps Determine the Creditor’s Rights Under a Plan 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, that is when the value of its claim exceeds the value of the collateral securing it. In that case, […]


Quaint storefront of small business

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 […]


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