Selected Cases on Valuation Methodology and Confirmation of Plans of Reorganization
Robert J. Keach; Bernstein, Shur, Sawyer & Nelson
Valuation of particular assets, or the entire enterprise, may be critical in a chapter 11 case. Valuation issues may determine whether a secured party is adequately protected or entitled to relief from stay and whether interest can or cannot accrue on secured claims. In contested proceedings with respect to the confirmation of plans of reorganization, valuation of the enterprise is critical. The valuation chosen by the court will often determine whether or not a plan unfairly discriminates among classes and/or is fair and equitable, including the absolute priority rule has been complied with or whether a class of senior debt has received more than 100 percent of the value of its claims to the detriment of a junior class of equity interests.
Minutes from the 2004 Winter Leadership Conference
The Young & New Members Committee (YNMC) met at 5:00 p.m. on Dec. 2, 2004, at the Winter Leadership Conference. The meeting was lead by Co-chairs Brian Shaw and Doug Deutsch and included:
- Introduction/orientation to ABI,
- YNMC subcommittee updates; and
- Introduction of the YNMC/BRC joint committee program by Mark Jones of Mesirow Financial Advisors. The meeting was followed by a reception with the ABI board of directors.
The YNMC reconvened at 9:30 a.m. on Dec. 3, 2004, for its joint meeting with the Business Reorganization Committee for the program “Valuation in Chapter 11 Cases: What You Want Depends on Where You Sit (And When You Are Sitting There).” YNMC’s Melissa Kibler Knoll moderated the panel, which included BRC Co-chair Bob Keach and others. The program started with an overview of how valuation effects various aspects of a chapter 11 case, and discussed various methodologies used to perform valuation in the chapter 11 context. The panel then presented a case study that was utilized to show attendees how different methodologies, and subtle changes in approaches and mathematics can be utilized to present valuation in the most beneficial manner to your position in the chapter 11 case.