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Valuation Game Theory: Constituents’ Tactics and Perspectives
How do different constituencies “play” the same valuation issue? This panel will explore how and why valuation is an art and not a science in chapter 11, and will take on the challenge of debating whether or not this should trouble us as bankruptcy professionals and investors.
Valuation Standards: Market Test vs. Expert Valuations
This panel will take a look at developments in legal standards for determining the whole enterprise valuation, and their impact on valuation methodology. What drives the market definition and its underlying policy? When is the market likely to be wrong (and how do you show when not to trust the market)? How reliable is a “robust auction,” and why might the outcome differ from an expert valuation? When is an expert valuation likely to be suspect? The status of the “new value doctrine” and related valuation issues will also be discussed.
The Value Distribution Waterfall: Flows and Diversions
This session will examine the legal issues that impact the flow and diversion of the value distribution waterfall, including identifying gaps between the scope of, and the methodology for determining, enterprise value and collateral value; the impact of §§ 502, 506(a), 506(c) and 552 on the allowed amount of secured and unsecured claims; and contractual and non-contractual adjustments to legal priorities (including intercreditor lien agreements, intercreditor claim-subordination agreements, participation agreements and collective action, equitable subordination, intercompany claims and substantive consolidation). Using a hypothetical case, the panel will illustrate these issues and the uncertain and complex valuation, allocation and intercreditor issues that can arise in a multi-tranched, multi-debtor restructuring case
Bankruptcy: When Is It the Answer? Maximizing the Value of Distressed Debt
In today’s environment, several options exist for effectuating a restructuring of a company in distress. When is a chapter 11 filing the best option given the costs, risks and potential for reputational damage, and when is it not? This panel will discuss the fundamental questions to be asked when considering the alternatives to bankruptcy and, more specifically, when bankruptcy preserves or creates value.
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