Bankruptcy and Reorganization

Valuation in a bankruptcy setting is an especially challenging exercise. The first determination to be made is whether or not the Debtor has a going concern value, what that value might be and how likely it is to be realized. Beyond this hurdle is the need to ascertain the fairness and likelihood of a successful exchange offer, where the creditors, in exchange for their claims, are offered equity in the newly reorganized entity. A well reasoned valuation around which to build consensus is a critical element in any reorganization of this type.