RP128-WEB - Show me the Value: How Valuation Testimony Wins Bankruptcy Cases

Registration

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Webinar Course Description

The webinar will explain the strategy and timing of valuation in bankruptcy cases.  If values are too aggressive,  then the Debtor may have an equity cushion which will permit collection of late fees and attorney fees for a secured creditor.  If values are conservative, then the Debtor may lose the right to reorganize because the automatic stay will be lifted and the asset subject to foreclosure.  The timing of valuation is also critical: before case commences, early in case or as part of a reorganization analysis. It's all about the value of assets especially real property in bankruptcy especially Chapter 11 cases which are actively litigated.  Bankruptcy Courts need savvy appraisers who are patient and precise. 

Course Audience

Appraisers, lawyers who file bankruptcy proceedings, lawyers who represent creditors in bankruptcy cases

Instructor Information

Richard D. Trenk | Partner | McManimon, Scotland & Baumann, LLC

For over thirty (30) years, Richard D. Trenk, an experienced Bankruptcy and Debtor/Creditor attorney, has been providing innovative representation and educational experiences regarding successfully reorganizing large and small businesses and individual's financial affairs.  Mr. Trenk has served as President of the Essex County Bar Association, one of the largest County Bar Associations in the mid-Atlantic region.  He is currently a member of McManimon, Scotland & Baumann, LLC, with offices in Roseland, NJ, Newark, NJ, Trenton, NJ and New York City, NY.  He has investigated numerous debtors and served in various fiduciary capacities including Trustee, Custodial Receiver, Statutory Receiver and FCC Receiver.  In these positions, he has recovered millions of dollars for creditors.

Agenda

The following topics are covered in this course:

I.  Basics of Bankruptcy
          A.  Different types: Chapter 7, Chapter 9, Chapter 12 & Chapter 13
          B.  Automatic Stay: Impact and Contempt
          C.  Bankruptcy Courts: Raison D'etre: Save Jobs

II. Bankruptcy Process
          A.  Filing
          B.  Impact of Filing
          C.  Methodology of Filing
          D.  United States Trustee's Office: Department of Justice Overnight
          E.  First Meeting of Creditors pursuant to 11 U.S.C. Section 341(a)
          F.  Rule 2004 "Fishing Expedition" Depositions

III. Goal of Bankruptcy Filing
          A.  Bankruptcy Discharge
          B.  Plan of Reorganization Confirmation
          C.  Disclosure Statement process pursuant to 11 U.S.C. Section 1125
          D.  Creditors Committee

IV.  Critical Importance of Retention 
          A.  Disinterestedness
          B.  Process/Filing of Petition
          C.  Full Disclosure of any prior relationships
          D.  Timing of Petition for Retention
          E.  Entry of Order
          F.  United States Trustees Supervision
          G.  Requirement to File Fee Application

V.  Valuation
          A. Requirement to Value Assets as of Bankruptcy Filing.
          B. Valuation Methodology.
          C. Amount of Mortgages against Assets.
          D. Is there equity or not?
          E. Equity controls post type intervention, interest, late fees, attorneys fees.
          F. Lack of Equity or upside down controls lifting the Automatic Stay.

VI.  Test for confirming Chapter 11 Plan of Reorganization
          A.  Amount available to unsecured creditors in liquidation.
          B.  One consenting impaired class.
          C.  Feasibility of payments over time.
          D.  Fair and Equitable treatment.
          E.  Ability to Modify Interest Rates. 

Learning Outcomes

Upon completion of this course,students will be able to:

• Present General Overview as to Bankruptcy Process Including Requirement, Procedures and necessary expertise;
• Identify specific information concerning Dept. of Justice, United States Trustee, United States Bankruptcy Courts, Professionals and Oversight; 
• Analyze Burdens of Proof and Contested Hearings whereby valuation information is required; and
• Discuss need for valuation evidence/determination in terms of amount to be paid to creditors, treatment of interest, late fees and attorneys fees.