BANKRUPTCY

Bankruptcy proceedings are often complex and require the assistance of a qualified financial expert.  OverMont assists clients and their counsel with issues prior to and during bankruptcy proceedings by providing the following service:

 

Adequate Protection:  Determining whether or not a secured creditor is adequately protected requires not only a determination of the current value of collateral, but also an estimate of the extent to which the collateral may decline in value moving forward.  OverMont performs valuations of the assigned collateral to determine whether a debtor-in-possession should retain the right to use the property or if a stay should be lifted, giving creditors access to the property.

 

Asset Recovery:  The trustee or debtor-in-possession may take action to recover assets of the estate.  Among the sources of recovery are preferences, fraudulent transfers, and requests for reclamation.  OverMont professionals provide expert testimony in bankruptcy and state courts regarding the determination of whether a debtor was insolvent at the time of a transfer at issue.

 

Plan Confirmation / Feasibility:  Expert services are often required to assist with the development of a reorganization plan.  OverMont provides guidance on valuation issues related to feasibility, cram down and the reorganization value of the debtor.

 

Liquidation Values:  A liquidation analysis may be required to assist a court’s understanding of liquidation value if some creditors do not vote in favor of a plan.  OverMont performs the analysis necessary to establish the liquidation value of a debtor.

 

Valuation of Intangible Assets:  OverMont provides expert valuation services related to intangible assets, including an analysis of reorganization value, sale of intangible assets, secured creditor collateral position, cancellation of indebtedness income, and licensing transactions.

 

Solvency Analyses:  OverMont performs solvency analysis in bankruptcy matters that typically address three questions:

 

  1. Whether fair value of the business’s assets exceed its liabilities (balance sheet test);
  2. Whether the business has adequate capital to engage in business (adequate capital test); and
  3. Whether the business has the ability to pay debts as they become due (cash flow test).