Bankruptcy & Restructuring Valuation Services

Adding value where it counts

Financial distress can threaten survival of any organization—particularly in today’s tough economy.  When a company decides to pursue a workout, restructuring or a Chapter 11 solution, it needs the support of professionals who are experienced with the unique issues presented by a business recovery or insolvency engagement.

Given the stakes, finding an experienced, independent firm is essential to a company’s successful passage through financial distress.

Regardless of scope and complexity, we have been there before.  American Appraisal has provided services in some of the largest bankruptcy cases in history and frequently provides valuation and related services in a variety of settings both in and out of Chapter 11.

Our Consultants are valued by Clients for their ability to quickly identify issues, gain confidence of all parties, develop and deploy workable solutions with total discretion.  There are no agendas here; other than meeting your need for quality, accuracy, timeliness and impartiality.

We invite you to discover the American Appraisal difference.

What we do

Valuation analysis in a business recovery, bankruptcy or insolvency setting is often subjected to an extraordinary level of scrutiny. Under these circumstances, we recognize that Clients require more than just a cursory appraisal.  They need a thoroughly-supported, industry-specific deliverable that will hold up in a contested setting.

Our Consultants and in-house legal resources understand the language, complexities, nuances and rhythms of the bankruptcy process and other distressed corporate settings.  Their expertise in valuing all classifications of tangible and intangible assets ensures our ability to quickly and reliably complete going concern and/or solvency analyses.  Our services include:

Pre-Filing / Workout / Restructuring Services
We are a valuable and timely resource for Clients, their officers, directors, legal and financial professionals when the corporate entity approaches or enters the zone of insolvency.

• Advisory services for a Client’s management, auditors, investors and lenders whenever the value of assets or the solvency of a business enterprise is at issue
• Solvency and Fairness Opinion services for board members of troubled companies looking to restructure their debt or engage in a transaction that requires an independent opinion
• Valuation services for purposes of IRC §§ 108(b) and/or 382 to assist Clients in important decisions regarding the restructuring of debt in a distressed setting

Chapter 11 Services
Our substantial experience working in Chapter 11 settings allows us to hit the ground running to serve our Client’s needs when a filing is contemplated or a case is already underway.

We understand the bankruptcy retention and fee application process and can navigate that process quickly and smoothly.  Our broad industry experience enables us to produce valuations and solvency analyses that ‘stand up’ when you require:

• Analysis and testimony for DIP financing negotiation, relief from Automatic Stay proceedings, use of cash collateral and other disputes that can arise in the early stages of a Chapter 11 filing
• Valuation in connection with the sale of assets or business segments, including sale of substantially all of the assets of an estate under Section 363 of the Bankruptcy Code
• “Best interest” analysis, liquidation analysis and related valuation considerations in connection with a debtor’s plan of reorganization

Post-Emergence Services

• Valuations to satisfy reporting obligations under SOP 90-7 (“Financial Reporting by Entities in Reorganization under the Bankruptcy Code”) in connection with a restructuring or emergence from Chapter 11
• Insolvency analysis and capital stock valuations for IRC Section 368 compliance

In addition, we work with secured and unsecured creditors, committees and other interest holders in bankruptcy cases on all issues relating to value that may arise in a Chapter 11 case, including comprehensive valuation reports and expert testimony regarding the value of real estate, personal property and intangible assets, as well as the value or solvency of a going concern.

Who we serve

American Appraisal is comprised of more than 900 employees, operating from major financial centers throughout Asia-Pacific, Europe, and North and South America.  Collectively, our Consultants possess deep industry experience that enables us to deliver what Clients need, when and where they need it.

• Aviation & Automotive
• Chemical
• Consumer/Retail
• Energy & Resources
• Financial Products & Services
• Healthcare & Life Sciences
• Leisure & Entertainment
• Manufacturing
• Metals & Mining
• Telecommunications

• WorldCom, Inc./MCI, Inc.  Committed over 50 of our European and North American Consultants to value the tangible and intangible assets involved in one of the largest bankruptcy cases ever filed.

• Armstrong World Industries, Inc.  Valued the Debtor’s real and personal property located throughout Asia, Europe and North America, including intangible assets such as intellectual property, consumer brands, patents, distributor and customer relationships.

• Coram Inc.  Valued the Debtor’s interest in real, personal and intangible property comprising more than 70 facilities situated in over 20 states.

• Delta Air Lines, Inc.  Valued the Debtor’s real estate interests, including complex airport terminal leasehold interests that involved unique legal and regulatory factors at multiple locations on short notice to assist in Delta’s successful reorganization.

• Formica Corporation  Valued real and personal property at more than 30 facilities in Asia, Europe, North and South America.

• Owens Corning  Valued 11 reporting units with over 300 owned and leased facilities in 17 countries, and intangible assets consisting of trademarks, technology, supplier contracts and customer relationships for fresh start accounting purposes.

• Solutia, Inc.  Assisted with its DIP financing, “best interests” testing and plan process in connection with a successful reorganization.  We valued the Debtors’ tangible and intangible assets, comprising more than 30 facilities in 11 countries.

• US Airways Group, Inc.  Served as the Debtor’s valuation Consultant in both of its Chapter 11 filings. Assisted with DIP financing and valuation of real estate/leasehold interests, machinery/equipment, financial assets/liabilities and intangible interests.

Other Clients who have benefited from our bankruptcy-related services include: