Bankruptcy Valuation, Liquidation Analysis, Insolvency Adv.

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Under the United States Code ("U.S.C.") Title 11, bankruptcy is a legal procedure for dealing with debt problems of an individual or business (the "debtor"). Bankruptcy is a legal declaration of the inability or impairment of an individual or company’s ability to meet and pay their liabilities. Knowing the bankruptcy value of the business and its assets is critical to the restructuring process.  

Bankruptcy Valuations 

 In any bankruptcy or restructuring proceeding, expert asset appraisals and business valuations are crucial to maintaining the confidence of the creditors' committee or trustee. We are experts in valuing tangible assets and intangible assets. Whether filing under Chapter 7 to liquidate assets, or under Chapter 11 in efforts to reorganize, we have the personnel, expertise, and resources required to provide the kind of bankruptcy appraisals and valuations that can withstand scrutiny. 

Whether you are a trustee, part of a creditor committee, or head of a distressed company, our experienced and skilled staff can provide a range of supportable conclusions of value, such as: 

•Orderly liquidation value   

•Forced liquidation value   

•Going concern value   

•Reorganization value

 We provide these values (before, during, and after bankruptcy filing) for the business as a whole and for: 

•Tangible assets, such as machinery, equipment, land, buildings, improvements, etc.   

•Intangible assets, such as trade names, patents, designs, etc.

Whether the issue is secured or unsecured creditor collateral, adequate protection, solvency, fraudulent conveyance, fresh start accounting, or related tax issues, our expert bankruptcy valuations and bankruptcy appraisals can help facilitate the reorganization or restructuring process. 

David Hahn is an MAFF credentialed in addition to CVA, ASA, CCIM, and CM&AA.  

The Master Analyst in Financial Forensics (MAFF) credential is designed to provide assurance to the legal community – the primary users of litigation consulting services – that the designee possesses a level of experience and knowledge acceptable by the institute to provide competent and professional forensic financial support services. 

Earning the credential requires consideration of all of the person’s qualifications and commitment to the discipline. This includes prior education and experience, prerequisite and required training as provided by the Financial Forensic Institute, testing – both proctored and case study and post-requisite requirements for recertification. The MAFF must re-certify every three years. 

 Master Analyst in Financial Forensics have come to be known as premier litigation consultants due to their extensive business valuation backgrounds.  MAFF’s engagements range from the determination of prepackaged bankruptcy financial advisory, liquidation analysis, and restructuring adviosory.

Beyond it encompasses personal and commercial damages, breach of contract and tort liability to patent/trademark/copyright/trade secrets infringement. 

 The MAFF is familiar with the Rules of Evidence, attorney work product privilege, courtroom protocol and preparation of reports under Federal Rule 26(a)(2)(B). 

Testifying experts are only as good as their ability to opinions to the Trier of fact. The MAFF has the communication skills and professional knowledge to be a compelling expert witness.  As a litigation team member, the MAFF can assist in trial and discovery preparation in several different ways:

Assisting with the drafting of requests for the production of documents and interrogatories relating to financial and technical issues:

•Monitoring, evaluating and controlling documents produced during discovery   

•Review, critique and response to opposing expert reports   

•Assist in defining the scope of damages   

•Assist with compilation of numeric summaries for inclusion in briefs, pleadings and motions   

•If a testifying expert – offer testimony at deposition and at trial   

•If a consulting expert – assist attorney with managing expert witness preparation and testimony   

•Develop strategically focused questions for direct and cross-examination   

•Preparation of forensic accounting analyses

We provide the Liquidation Analysis as Financial Advisor for the Chapter 7 or Chapter 11 Bankruptcy proceedings.

The Debtors, with the assistance of their financial advisors, need to submit this Liquidation Analysis for the purpose of evaluating whether the Plan meets the so-called best interests test under section 1129(a)(7) of the Bankruptcy Code. The Liquidation Analysis can be prepared assuming the Debtors current Chapter 11 Cases convert to chapter 7 proceedings under the Bankruptcy Liquidation Date  and their assets are liquidated. 

A chapter 7 trustee ( Trustee ) would be appointed or elected to commence the liquidation of all of the Debtors assets. To maximize recovery, the liquidation is assumed to occur over a 12 to 18 month period (the Wind Down Period ). The Liquidation Analysis is based on unaudited book values as of certain date, and these values, in total, are assumed to be representative of the Debtors assets and liabilities as of the Liquidation Date. Values associated with Non- Debtor Affiliates are contained within such assets and liabilities. However, the Liquidation Analysis does not include recoveries resulting from any potential preference claims, fraudulent conveyance litigation, or other avoidance actions.

The Liquidation Analysis indicates the estimated values that would be obtained upon disposition of assets pursuant to a hypothetical chapter 7 liquidation, as an alternative to continued operation of the business as proposed under the Plan.

Accordingly, values discussed herein are different than amounts referred to in the Plan, which illustrates the value of the Debtors business as a going concern. The Liquidation Analysis refers to certain categories of Assets, liquidation costs, and Claims. The following notes describe significant assumptions associated within each category.

1. DIP Repayment if any.

Assets

2. Cash and ST Investments.

3. Restricted Cash.

4. Third-Party Accounts Receivable.

5. I/C Pre-Petition Receivables.

6. I/C Post-Petition Receivables.

7. Fuel Inventory.

8. Other Current Assets.

9. Flight Equipment.

10. Other Property and Equipment.

11. Intangible Assets.

12. Other Assets.

Administrative Claims

13. Trustee Fees.

14. Trustee s Counsel and Related.

15. Wind-Down and Professional Fees.

Claims

16. Secured Claims.

17. Total Administrative and Priority Claims.

18. Unsecured Claims.

FINANCIAL ADVISORY FOR INSOLVENCY

When a business or a real estate's solvency is in question, our Financial Advisory unravels financial information to facilitate informed, corrective action.  Banks and alternative lenders call us when a borrower’s performance deteriorates.  Shareholders and their counsel call us when a business’s cash flow or valuation is in dispute.  

Or the debtors in possession in the Chapter 11 reorganization proceedings want to submit the reorganization plan along with liquidation analysis, we cut through the noise to determine current and projected cash flow, allowing the parties involved to determine:

• Is the business/real estate viable?
• Should additional funds be advanced?
• Can the business be right-sized?
• Should the business file Chapter 11?
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Our full-spectrum of Financial Advisory Services are efficiently provided by an experienced team of turnaround professionals, accountants, fiduciaries and industry specialists.

The Master Analyst in Financial Forensics (MAFF) credential is designed to provide assurance to the legal community – the primary users of litigation consulting services – that the designee possesses a level of experience and knowledge acceptable by the institute to provide competent and professional forensic financial support services. 

Earning the credential requires consideration of all of the person’s qualifications and commitment to the discipline. This includes prior education and experience, prerequisite and required training as provided by the Financial Forensic Institute, testing – both proctored and case study and post-requisite requirements for recertification. The MAFF must re-certify every three years. 

 Master Analyst in Financial Forensics have come to be known as premier litigation consultants due to their extensive business valuation backgrounds.  MAFF’s engagements range from the determination of prepackaged bankruptcy financial advisory, liquidation analysis, and restructuring advisory.

Beyond it encompasses personal and commercial damages, breach of contract and tort liability to patent/trademark/copyright/trade secrets infringement. 

The MAFF is familiar with the Rules of Evidence, attorney work product privilege, courtroom protocol and preparation of reports under Federal Rule 26(a)(2)(B). 

Testifying experts are only as good as their ability to opinions to the Trier of fact. The MAFF has the communication skills and professional knowledge to be a compelling expert witness.