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ABI Live: Pension Tension: Dealing with Plans in the Restructuring World
Presented by ABI's Labor and Employment Committee, this webinar will address current employee- and labor-related issues in chapter 11 and out-of-court restructurings, including: (a) whether private-equity sponsors may be subject to pension fund withdrawal liability under ERISA in light of the First Circuit’s Sun Capital decision; (b) whether pension plan withdrawal liability is entitled to administrative claim status; and (c) the status of the Pension Benefit Guaranty Corporation’s moratorium on 4062(e) enforcement. Attorneys and other restructuring professionals who deal with the PBGC will learn about current developments in this dynamic and changing area of law, which plays an important role in many reorganizations today.
Track B: Technical Valuation Issues: Liquidating Trusts
This panel will focus on developments related to the use of liquidating trusts from both the legal and financial reporting perspectives. Expected topics will include the use of liquidating trusts in the prosecution of actions on behalf of, and for the benefit, of creditors (and the financial concerns, timing, and fiduciary concerns that accompany the prosecution of the same), and the application of recent accounting pronouncements related to liquidation accounting and the accompanying valuation considerations.
Track B: Technical Valuation Issues: Assessment and Quantification of Long-Term, Unliquidated Debt
Issues surrounding the assessment and quantification of long-term, unliquidated obligations; such as pensions, environmental remediation, and perpetual care of cemeteries, are complex and divisive. This panel will explore the issues, as well as methods and techniques, to be considered when assessing and quantifying such debt in the context of financial distress and bankruptcy.
Track B: Technical Valuation Issues: Valuation Adjustment
Valuation is a critical, and often hotly disputed, issue in most bankruptcy cases. Enterprise valuations drive creditor recoveries, and solvency valuations are often outcome-determinative for the success (or failure) of fraudulent transfer and other bankruptcy-related litigation. As a result, valuation disputes often become mini-battles of the experts, the reasonableness of their assumptions and their relative credibility. Disputes usually center around those items where the expert has made subjective adjustments based on professional judgment, and even small adjustments can lead to substantial differences in value. This panel explores those issues that are most often “adjusted” based on professional judgment, including normalizing EBITDA, methodology weighting, treatment of excess cash, control premiums, minority discounts, liquidity discounts, and contingent assets and liabilities.
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