their creditors with respect to an overall exit strategy for their chapter 11 cases. A&M will provide such restructuring support services as A&M and the Debtors shall deem appropriate and feasible in order to manage and advise the Debtors in the course of these chapter 11 cases, including (without limitation) with respect to the following: a. (a)(5) and likewise, the Bankruptcy Code’s g ood faith requirement. Additionally, Chippewa submits that the Plan will be implemented in violation of non-bankruptcy environmental laws because of its silence regarding groundwater monitoring, reclamation, and related bonding. 50 Genco, B.R. at (quoting Chemtura, B.R. at ). Jurisdiction of the Bankruptcy Court in the Event Chemtura Canada Becomes a Debtor: or rejection under section of the Bankruptcy Code. “Exit Credit Facility Agreement” means one or more financing Reorganized Debtors when due in the ordinary course until such time as the Bankruptcy Court enters a final decree in such.
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In return for the extension, CMBS noteholders benefitted from increased margin, improvement of the cashflow waterfalls including increased amortization of the senior CMBS tranches and various structural enhancements which were implemented to defend the CMBS credit ratings.
This was one of the first CMBS deals to be fully restructured in what is, following the explosion in structured finance deal size and complexity that took place during the credit boom, a new and intricate sector for European restructuring. The two transactions were part of a broad restructuring effort which also included ABS facility, credit facility and union agreement amendments and provided YRC with runway to execute its business plan.
Trusted advisor to Wind Hellas Noteholders. November July April February In the extremely difficult economic environment over the last several years, this phenomenon has been quite prevalent, even with companies that are in complete liquidation mode or that have been bailed out by the government with no hope of a recovery for equity holders e.
This argument seems reasonable at first, given the deterioration in the economy, and particularly in the housing industry, just prior to the Transaction. He also noted that even under the more optimistic cash flow assumptions used by TOUSA and its advisors, the company was still projected to fail covenants in the near future. In his view, TOUSA was left with little room to maneuver in a deteriorating marketplace and would be unable to take advantage of any new opportunities.
In other words, the company was doomed to fail. However, the Committee still needed to prove that the Conveying Subsidiaries did not receive reasonably equivalent value. The Conveying Subsidiaries did not receive any of the proceeds, they did not benefit from any debt relief, they did not benefit from the acquisition of any homebuilding inventory, and they did not receive any value in the form of tax benefits which would have happened without the Transaction.
According to the Court, the defendants failed to show that the Conveying Subsidiaries received reasonably equivalent value, or any substantial value at all, as a result of the Transaction. Concluding on the issue of solvency for a company that is in distress is a complicated endeavor. Given the complexity of these issues, these conclusions often involve significant judgment. However, it is imperative that the valuation expert remain independent and use as much third-party research and market data as possible to corroborate the underlying assumptions.
In the case of TOUSA, the company was led to believe that it could handle the debt load of the Transaction, despite the rapidly deteriorating industry and economy. As this case illustrates, it is imperative that valuation experts remain independent and use as much third-party research and market data as possible to corroborate the underlying assumptions in a solvency opinion. Discounted Cash Flow Method With respect to the Discounted Cash Flow analysis, the expert for the Committee based his cash flow projections on the forecast model created by TOUSA and its advisors, but lowered the projected average sales price per home because it was an unreasonably high assumption in his opinion, which was corroborated by supporting testimony.