The estimated liquidation values of the liabilities are subtracted from the estimated proceeds to arrive at an estimated net proceeds amount.
Under this safe harbor, the FMV of the debt-for-equity interest will be deemed to be the liquidation value if (1) the debtor partnership determines its partners' capital accounts under Regs.
This article assists the practitioner by analyzing the definition of liquidation value in the literature on valuation.
These two perspectives of investors give rise to two valuation concepts related to timber: liquidation value and holding value.
Holding value represents the DCF of income resulting from retained real property, while liquidation value represents personal property.
If critics complain that today's historical cost-based financials don't provide adequate information to users of financial statements, what will those same critics say if they're given reproduction cost information when they want liquidation values, or vice versa?
One report gave the liquidation value of the assets in case the banks had to sell them to a third party.
Liquidation values in bankruptcy plans may be understated, and going-concern values may be overstated, since a firm has an incentive to try to convince creditors that the firm is worth more alive than dead.
If firms understate their liquidation values, the liquidation-value-based excess returns will be overstated.
Under bankruptcy case law, "[t]he valuation of the debtor's business and assets can be based on a number of appraisal approaches that have been widely accepted by bankruptcy courts, including replacement value, net asset value, liquidation value
, going concern value, comparable corporation value, capitalization of earnings and discounted future earnings.
The Proxy Statements dated August 13, 1999 and September 10, 1999 violated Section 14(a) and Rule 14a-9 because they misrepresented the realizable liquidation values of Novacare.
The complaint alleges that during the Class Period, defendants misrepresented the Company's liquidation value and financial condition by making false and misleading statements inflating the proceeds from the sale of its component business.