All items from Business Finance & Restructuring News - Weil

Discounted cash flow analysis is a mainstay among the valuation methodologies used by restructuring professionals and bankruptcy courts to determine the enterprise value of a distressed business. Despite its prevalence, the United States Bankruptcy Court for the Southern District of New York recently concluded the DCF method was inappropriate for the valuation of “dry bulk” shipping companies. In re Genco Shipping & Trading Limited. Although the bankruptcy court merely applied existing law to the facts of the case, the decision in Genco could serve as precedent for the valuation of companies in other segments of the shipping industry, or other industries, that experience significant volatility in rates.
Genco and the Prepackaged Plan of Reorganization
Genco Shipping & Trading Limited is a leading provider of maritime transportation services for “dry bulk” cargoes, such as iron ore, coal, grain, and steel products. Through its subsidiaries, Genco owns and operates a fleet of 53 vessels, which it contracts out to third-parties under fixed-rate or spot-market time charters.

Posted 1 day 1 hour ago

As a result of the sheer number of legal and factual issues involved in many chapter 11 cases, bankruptcy judges can sometimes find themselves as captives of the parties; they may not appreciate the significance of an issue or a provision buried in a longer document unless it is properly presented. Thus, it is imperative that counsel flag the key issues for the court. Failure to do so risks severe consequences for parties in interest, as exemplified by In re Lower Bucks Hospital.

Posted 2 days 1 hour ago

Weil Partner, Gary Holtzer, will be participating on a panel at the upcoming Views from the Bench conference to be held on Friday, October 24th, at the Georgetown University Law Center, in Washington, D.C.
For additional information on the event, please visit

Posted 3 days 25 min ago

Weil Partner, Harvey Miller, will participate on a panel to discuss: Merchants of Venice: The Ethics of Debt Insolvency at the upcoming National Conference of Jewish Lawyers, being held at the Palmer House Hilton, 17 East Monroe Street, Chicago, Illinois on Wednesday, August 6, 2014.
For additional information on the conference and schedule, please visit

Posted 3 days 31 min ago

One topic we regularly write about on the Bankruptcy Blog is releases – especially third-party releases. In fact, as recently as Thursday, we wrote about third-party releases. The topic of third-party releases is often controversial, and circuits disagree about the extent to which they are permissible, if at all. In a recent memorandum opinion confirming the chapter 11 plan of drybulk shipper Genco Shipping and its debtor affiliates, the Honorable Sean Lane of the United States Bankruptcy Court for the Southern District of New York in In re Genco Shipping & Trading Limited, et. al. waded into the controversy by considering the appropriateness of third-party releases – and non-consensual ones at that.

Posted 3 days 1 hour ago

This article has been contributed to the blog by Patrick Riesterer. Patrick Riesterer is an associate in the insolvency and restructuring group of Osler, Hoskin & Harcourt LLP.
We recently reported on the public consultation process on insolvency law reform initiated by Industry Canada, the Canadian federal department responsible for the principal Canadian insolvency law statutes, the Companies’ Creditors Arrangement Act (“CCAA”) and the Bankruptcy and Insolvency Act (“BIA”). Industry Canada published a discussion paper and sought public submissions on a number of topics relating to insolvency law reform. The period for public comment has now closed and a number of submissions by professionals and members of the public have been published on Industry Canada’s website. The comments can be found here

Posted 4 days 1 hour ago

It’s a beautiful day for the beach.  Even though some of us may be at the beach today (and if you are at the beach, why didn’t you invite us?), bankruptcy, like time, waits for no one.  Wherever we happen to be, ‘tis the season for a little something light – or at least lighthearted.  In the spirit of summer Fridays, we wanted to take the opportunity to bring you some of the colorful quotes that we’ve come across in bankruptcy decisions over the past few months.  And for those of you who crave more: worry not – we’ll keep combing our records in efforts to bring you further installations of Bankruptcy Beach Reading as we continue to geek out over hidden gems like these!

Creditors Behaving Badly
In re Himes, 2014 WL 2442062 (Bankr. C.D. Ill. May 29, 2014) (Fines, J.)
A creditor texted the debtor the following:
Boy the apple doesn’t fall very far from the tree does it. You are such a lying piece of * * * *.  Nobody at that table believed a word you said today. You should have had your lying piece of * * * mother coach you before you went to court. She’s a much better liar, or I should say perjurer than you are, but she had more practice also. They are not done with you. Marsha is watching both of you closely.”

Posted 1 week 1 hour ago

The inclusion of third-party releases in plan of reorganization can be a particularly contentious aspect of the plan confirmation process. Debtors seeking such releases typically face opposition from affected creditors and scrutiny from bankruptcy courts that consider such releases prone to abuse. As the Fourth Circuit’s recent decision in National Heritage Foundation, Inc. v. Highbourne Foundation makes clear, courts will not simply “rubber stamp” third-party releases absent creditor consent unless the debtor is able to prove that the unique circumstances of the case justify the release. Even in jurisdictions where third-party releases may be enforced in appropriate circumstances, many courts only grant releases “cautiously and infrequently.”

Posted 1 week 1 day ago

Walk a mile in my shoes
Walk a mile in my shoes
Yeah, before you abuse, criticize and accuse
Walk a mile in my shoes
(Elvis Presley, “Walk a Mile in My Shoes”)
Walk a mile in these Louboutins
But they don’t wear these *%!# where I’m from
I’m not hating, I’m just telling you
I’m tryna let you know what the %#!* that I’ve been through
(Iggy Azalea, “Work”)

Posted 1 week 1 day ago