Valuation

No business chapter 11 case gets resolved without some determination of value. This panel of valuation experts and lawyers will discuss complex commercial valuation issues, including: (1) the multiple approaches to value (i.e., discounted cash flow, comparable company) and how to reconcile those values; (2) how the purpose of valuation affects the selection of the valuation methodology; (3) the most common places to probe when challenging a valuation; and (4) standard of value (fair market value, investment value or something else) and premise of value (going concern vs. liquidation), and the implications on the valuation assignment. The panel will also discuss recent case law addressing valuation contests during the life of a case, including the timing of valuations and the impact of the differing values on secured parties’ rights in chapter 11 cases.

BAPCPA contained a number of provisions meant to assist the debtor in the art of valuation. The valuation process is more important than ever given recent Supreme Court rulings on exemption limits. This panel will revisit the statutory provisions of the Code and discuss recent cases dealing with the appropriate methodology to be employed by the debtor when completing the bankruptcy schedules — and how that valuation impacts the ultimate administration of the case by the trustee.

Topics may include selection of comparable companies; liquidity and marketability discounts; discounts for size and reorganization risk; determining a discount rate; option-based valuation methodologies (note that the panelists will discuss and highlight different positions that may be taken, but will leave it to you to decide which positions have more merit).

The Final Report of the Commission to Study the Reform of Chapter 11 proposes the most comprehensive modernization of restructuring law in a generation, including several recommendations affecting valuation methods, use of experts and disclosures by the reorganizing debtor. Hear a panel of commissioners and the Commission's reporter discuss the proposals and their impact on professionals.

This panel will consider current issues of interest to judges and insolvency professionals.

Intellectual Property (IP) is often a critically important part of a company’s value paradigm. Why has IP become an even greater focus for many companies today? How is IP valued in businesses, in litigation and in bankruptcy?

This panel will examine the “lessons learned” from recent financial services bankruptcies, settlements and restructurings (including some “near misses”), and financial distress in mortgage origination. The panel will also discuss bank holding company defaults, FDIC receivership issues, tax-sharing agreements, sale transaction issues and more.

From labor disputes in the American Airlines case to the negotiation of chapter 9 plans for Detroit, Stockton and San Bernardino, bankruptcy judges have looked to their colleagues to serve as mediators. What is the impact of this practice? Does it change the dynamics among the parties? Is there a role for private-sector mediators? Going forward, will bankruptcy cases continue to be fertile ground for alternative dispute resolution?

This panel will discuss and debate, from varying perspectives, the rise in formation of official equity committees in chapter 11 cases, how advisors can reach different valuations to support or oppose their formation, the role of the Office of the U.S. Trustee, and the ultimate value added to the estate.