Standard methodologies such as discounted cash flow and comparable company approaches are most applicable to valuing stakes in going concerns. That is, valuing a small portion of a company with stable prospects avoids numerous challenges present in early stage companies, whole company transactions, etc. In particular, required additional considerations for valuing the assets of companies at or near bankruptcy are often the most numerous.
In addition, there appears to be increased litigation activity challenging acquisitions, and courts are starting to limit options. This webcast will offer a general overview of these issues and trends to be aware of if acquiring distressed assets. Topics covered will include:
ÂÂ Litigation trends impacting acquisition and transaction structures in bankruptcy,
ÂÂ The 7th circuit case Castleton Plaza, L.P., 707 F.3d 821 (7th Cir. 2013), which held that a plan providing 100% of the equity to an insider must be subject to competitive bidding.
ÂÂ Cases addressing claims trading and whether the claim is subject to the same defenses in the hands of the acquirer, such as In re KB Toys, 470 BR 331 (Bankr. D. Del. 2012) as compared to an earlier case coming from the SDNY, In re Enron, 379 BR 425 (SDNY 2007).
ÂÂ The recent Wamu decisions on treatment of hybrid securities.
This advanced webcast assembles experts with extensive experience in bankruptcy litigation and valuation who will provide you with a thorough review and analysis of recent developments, hot topics, and techniques. The panelists will give an overview of the framework for valuing assets of companies at or near bankruptcy, as well as useful adaptations to standard valuation methodologies. They will also discuss the litigation of disputes over payment of obligations in stock, drawing from experience litigating several matters where there were disputes over treatment of trust preferred securities, litigation tracking warrants, and contract claims as either debt or equity.
NERA Economic Consulting (www.nera.com) is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For over half a century, NERAÂÂs economists have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the worldÂÂs leading law firms and corporations. With its main office in New York City, NERA serves clients from more than 20 offices across North America, Europe, and Asia Pacific.
Moderator:
Faten Sabry, Senior Vice President, NERA Economic Consulting
Panelists:
1. Nancy Peterman, Shareholder, Greenberg Traurig
2. Adam Strochak, Partner, Weil Gotshal
3. Ray Wong, Senior Consultant, NERA Economic Consulting
