Editorial Type:
Article Category: Research Article
 | 
Online Publication Date: 01 Jan 2013

Grounding Retrospective Solvency Analyses in Contemporaneous Information: Part I

CFA
Page Range: 186 – 211
DOI: 10.5791/0882-2875-32.4.186
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Abstract

Courts frequently use contemporaneous information to assess a debtor's solvency as of the date a disputed transfer was made or a disputed obligation was incurred. This is the first of three papers that provides a business valuation practitioner's perspective on how to use contemporaneous information to assess the debtor's solvency on the relevant date. This paper addresses the use of the debtor's contemporaneous stock and debt prices.

Copyright: American Society of Appraisers
Figure 1
Figure 1

VFI's Share Prices (Left) and Market Capitalization (Right)

Figure 2
Figure 2

VFI's Bond Prices

Figure 3
Figure 3

TOUSA's Share Prices (Left) and Market Capitalization (Right)

Contributor Notes

Michael Vitti is a managing director at Duff & Phelps, LLC, and a business valuation practitioner who has worked on several solvency analyses, including two of the matters discussed in this series of papers: (1) VFB LLC v. Campbell Soup Company, and (2) financial advisor to the court-appointed examiner into Lehman Brothers' bankruptcy filing.

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