Business

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.

This panel will discuss the assessment of a subject company and its situation, the nature of the assets in the distressed situation (i.e., company-specific or endemic of the industry), and other considerations for valuing companies in distress.

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.

Individual chapter 11 cases pose a number of thorny legal and practical problems for the bankruptcy practitioner. While individual chapter 11 cases contain many elements of corporate chapter 11 and chapter 13 cases, they do not fit comfortably in either chapter. Following the enactment of BAPCPA, courts have struggled to strike the appropriate balance between the provisions of the Bankruptcy Code intended for corporations and those intended for human beings. The result is substantial uncertainty for debtors and creditors alike. This session will explore: Does the absolute priority rule apply to individual chapter 11 debtors? May creditors commence an involuntary chapter 11 case against an individual? May individual chapter 11 debtors pay their living expenses in the ordinary course of business, or is notice and a hearing required? What are the advantages and disadvantages for debtors and creditors in an individual chapter 11 case as compared to a corporate chapter 11 case or a chapter 13 case?

This panel will discuss the obstacles that debtors and creditors face when attempting to effectuate a sale of a debtor’s assets through a fast-track § 363 sale motion at the outset of a case. The discussion will include (a) the advantages and disadvantages, from both the debtor and creditor perspective, of selling a debtor’s assets through a motion as opposed to a plan, (b) limitations of “free and clear” relief, (c) valuation and marketing on a short timeframe, and (d) insider transactions.

As if the Bankruptcy Code doesn’t give us enough to ponder, bankruptcy practitioners must consider the impact of the U.S. Tax Code on the decision-making process. This session will address the Internal Revenue Code “section 1398 short year” election and separate entity rules, discharge of tax claims, cancellation of debt (COD) income, and tax issues arising from mortgage modification, foreclosure, and transfer or abandonment of property.