Several high-profile cases have been working their way through the courts in which bankruptcy trustees or creditor trusts created under bankruptcy plans have challenged multi-billion dollar spin-offs and other leveraged transactions as fraudulent transfers, even though in each case the debtor entity was a public company whose stock traded at substantial equity values immediately following the transaction.
At the forefront of these cases is how the public equity or debt market’s valuation of the company should be treated by the courts. The cases also implicate issues of valuation of broader application, such as the role of discounted cash flow and other methodologies that are not market based, and the relative importance of after-the-fact expert testimony versus that of contemporaneous market data.
On December 12, 2012, Michael Genereux, Senior Managing Director of Restructuring & Reorganization at Blackstone and WilmerHale Partner Philip Anker examined these important issues.
"Valuing Forbearance in Fraudulent Transfer Action," The New York Law Journal (December 3, 2012)
Bankruptcy Express Webinar Series
The Bankruptcy Express Webinar Series includes complimentary 30-minute presentations on the latest developments in bankruptcy law. Attorneys from WilmerHale's Bankruptcy and Financial Restructuring Practice provide brief overviews of recent decisions and current trends that are changing the business landscape. CLE credit is offered.
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