Valuation

Negotiation and litigation regarding the allocation of value become more challenging when the debtor is part of an insolvent conglomerate. Parties must consider the allocation of value among subsidiaries and the presence of intercompany claims, guaranties and other complexities. This panel will discuss lessons learned and best practices for negotiating and litigating value allocation, focusing on recent bankruptcy cases and viewpoints from financial, legal and judicial perspectives.

Unprecedented levels of government stimulus, record levels of IPOs and an explosion of the SPAC market provided an abundance of liquidity to an already-buoyant market. These factors, combined with historically low interest rates, have fueled record levels of M&A and refinancing activity. This panel will examine the effects that this "easy money" has had on valuations throughout the pandemic, and compare these effects to companies' valuation outlooks for the remainder of calendar year 2022 and beyond.

This panel will examine current developments that may affect asset, enterprise and plan valuations. The panelists will discuss evolving market factors, the latest legal developments, and changing trends in valuation methodology.

This case-study-based discussion will focus on valuation for companies significantly impacted by COVID-19. The panelists will discuss recent cases where the market and business uncertainty caused by the pandemic led to unpredictable or unexpected valuation outcomes. Further consideration will be given as to how these outcomes might (or might not) be relevant going forward.

This panel will use a case-study approach and mock negotiations to work through restructuring options for a brand-new case study. The case focuses on issues related to the valuation, makewhole, shared-services agreement and governance issues of the company and its creditors.

Section 506(c) and 552(b) waivers have become a staple in the pre-petition-lender-turned-DIP-lender toolbox. But what are the unsecured creditor’s tools for pushing back, and the arguments for why value that accrued post-petition might properly be reserved for junior creditors? Apart from collateral battles, this panel will explore the types of securities or other considerations that some plans have distributed to the class junior to the fulcrum security in acknowledgment of the potential asset appreciation not fully realized at the time of plan negotiation, as well as the ABI Commission’s recommendation to implement a “Redemption Option Value” — and the challenges that such structures pose.

The experts on this panel will show you how to get the best valuation evidence before the courts, and will discuss how volatile COVID-19 conditions have impacted their valuation opinions.

Many businesses thrived and grew during the COVID-19 pandemic, while others died on the vine. How do you understand the value of distressed businesses in a post-COVID-19 world? This panel will explore how to evaluate post-COVID-19 business plans and tax strategies to enhance and preserve value.

The panelists will continue the conversation on confirmation by examining judicial vs. market valuation, valuation in light of Speedcast Int’l., equitable mootness, exclusivity termination, and the latest developments in § 363 sales.

This panel will discuss common valuation challenges and responses, and provide insight into piecing together multiple valuation techniques. The panelists will also touch upon identifying reasonable comps for similar companies and precedent transactions, reliance on/restating projections, and where valuation and liquidation analyses blend together, including non-cash-flowing assets.