During this webcast, a panel of experts will examine recent bankruptcy case decisions and assess their implications on financial and accounting analysis, as well as valuation. Among the cases the panel will discuss are two recent decisions from bankruptcy courts in the influential Second (In re AMR Corp.) and Third (In re School Specialty, Inc.) Circuits that reviewed the issue of whether a lender extending credit to a company is entitled to a contractual “make-whole” premium when the borrowing company commences a bankruptcy proceeding and seeks to prepay its obligations. In the AMR opinion, Judge Lane held that certain prepetition financing transactions did not require payment of a “make-whole” premium where the obligations were accelerated due to the bankruptcy filing. The appeal has been scheduled for oral argument but it will likely take some time for the Second Circuit to rule on the appeal. These two contrasting bankruptcy court decisions will be examined to assess the relevance of make-whole premiums.
The panel will also examine:
• Default rate interest (both pre- and post-payment), and whether agreements are enforceable as a matter of state law (e.g., General Growth Properties in New York and the Charles Street African Methodist Episcopal Church bankruptcy matter in Boston)
• Recent trends in valuation methodologies and the use of experts in bankruptcy litigation, and what the courts have been saying with regard to fair market value and reasonable equivalent value questions (e.g., In re TOUSA, Inc. and In re Chemtura Corporation)
The webcast will conclude with a Q&A session.
Moderator:
• Faten Sabry, NERA Senior Vice President
Speakers:
• John Garvey, NERA Senior Vice President
• Geraldine Ponto, Partner, BakerHostetler
• Stephen Selbst, Partner and Chair, Bankruptcy Practice Group, Herrick, Feinstein LLP
