Bankruptcy, Restructuring and Insolvency-Related Services

Valuation analysis in a workout, bankruptcy or insolvency setting is often subjected to significant scrutiny. An entity involved in a workout, restructuring or Chapter 11 solution needs the support of experienced, independent professionals. American Appraisal can assist with valuation services for companies in distressed settings, from pre-filing to post-emergence.

Pre-Filing, Workout and Restructuring Services
American Appraisal provides:

• Advisory services for an entity’s management, auditors, investors and lenders when asset values or the solvency of a business enterprise is an issue
• Solvency and fairness opinion services for entities looking to restructure debt or equity, or engage in another transaction requiring an independent opinion
• Valuation services in accordance with ASC 852, Reorganizations and ASC 820, Fair Value Measurements and Disclosures
• Valuation services for purposes of IRC §108(b), Debt Forgiveness, and/or IRC §382, Net Operating Loss Limitations and Built-in Gains

We also provide tax restructuring and reorganization services in accordance with various Internal Revenue Code sections, including:

• 351 and 355, Legal Entity Valuations
• 368, Taxable or Nontaxable Reorganizations
• 165, Worthless Stock Deduction

Chapter 11 Services
Our valuation and consulting services related to Chapter 11 proceedings include:

• Analysis and testimony for DIP financing negotiation, relief from automatic stay proceedings, use of cash collateral and other disputes that may arise in the early stages of filing
• Valuation in conjunction with sales of assets or business segments, including the sale of all or substantially all assets of an estate under Section 363 of the Bankruptcy Code
• Best interest analysis, liquidation analysis and related valuation considerations in support of (or in opposition to) a debtor’s reorganization plan
• Valuation of assets securing a claim
• Valuations and solvency analysis in support of or in connection with avoidance action litigation

We can assist with all issues relating to value in a Chapter 11 case. We prepare comprehensive valuation reports and provide expert testimony regarding business enterprise valuations and real, personal and intangible asset values, and the value or solvency of a going concern. We have worked with all constituencies, including debtors-in-possession, financial or restructuring advisors, committees, secured and unsecured creditors, asset purchasers and other parties in interest.

Post-Emergence Services
Services for companies undergoing restructuring or emergence from Chapter 11 include:

• Critical early advice regarding asset identification, asset aggregation and methodology selection to support reporting obligations under SOP 90-7/ASC 805 
• Valuation of invested capital, reporting units and tangible and intangible assets to assist emerging companies in establishing beginning balance sheets and/or meeting additional fresh start accounting or reporting requirements

Why American Appraisal?
American Appraisal has substantial experience providing valuation services in connection with large and small bankruptcy cases in jurisdictions across the country. We have the experience needed to complete the thorough, well-supported and industry-specific analyses required to assist companies in distressed situations, and we understand the complex legal processes involved.  With our focus on valuation services, we are able to deliver independent and objective value conclusions. American Appraisal is unaffected by the conflicting interests often held by banks, financial advisors and other professionals for whom valuation is not a core service.

American Appraisal’s experience in recent bankruptcy-related engagements includes valuing tangible and intangible assets, financial valuations and related services for debtors in large Chapter 11 cases such as:

• LyondellBasell Industries
• Pilgrim’s Pride
• Solutia, Inc.
• Interstate Bakeries
• Delta Air Lines, Inc.
• Philadelphia Media Network
• WorldCom, Inc./MCI, Inc.

Recent engagements include:

• Fresh start and sale valuation assignments
• Expert review and testimony regarding solvency for purposes of fraudulent conveyance claims
• Best interest testing in connection with the client’s preparation of a plan of reorganization
• Expert valuation and testimony relating to a series of property tax appeals in the context of a Chapter 11 reorganization
• Asset valuation for DIP financing