In a hearing scheduled for mid-January, Bernick will try to persuade a Delaware bankruptcy judge to value as worthless tens of thousands of claims stemming from lawsuits against Grace, which used asbestos in spray-on fireproofing and Zonolite insulation and other fireproofing products.
However, it seems to underline the importance of doing such planning, so a firm holds onto its revenues and value and avoid bankruptcy if the entrepreneur passes away.
The administration wants to grant bankruptcy judges the power to write down the value of a mortgage until it is affordable for the person in bankruptcy.
For Dewey, one value of the merger-and-bankruptcy plan would be to avoid a liquidation, which is an outcome that would make recovering accounts receivable and yet-unbilled legal time much more difficult, those familiar with the situation said.
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Kodak lost almost 90% of its market value in just over a decade, and declared bankruptcy last year.
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Certainly, the amounts of money involved in the specific frauds identified at Enron were small compared to the amount of shareholder value that was ultimately destroyed when it plunged into bankruptcy.
This would tweak the existing bankruptcy provision known as Chapter 13 to allow judges to write down the value of a primary mortgage.
Although the bankruptcy code is written at the federal level, individual states set the type and value of the assets that may be shielded from creditors.
The bankruptcy trustee can seize the house, sell it, and pay the debtor the understated value he claimed for it.
That drop in value caused Plaza Group to trigger the loans' net asset value ratio covenant and default, according to filings made by Plaza Group in bankruptcy court.
Many investments by hedge funds are hard to value because they are in assets, such as the debt of companies in bankruptcy proceedings, that are not traded and so have no market price.
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If you hold any of the GM debt issues, you may have an optimal time to sell these after the stock value has been established since the debt holders will be getting stock once the bankruptcy has been confirmed.
One possible reason for this is that independent board members are worried that their value in the market for directorships will plummet if they have overseen companies that have filed for bankruptcy or debated restructuring.
The Plaza Group claims in bankruptcy filings that it was undone by recent accounting rules that force private equity partnerships to write down the value of their investments in accordance with market valuations, as opposed to holding them at cost.
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