Expert Assignments and the Impact of COVID-19 COVID-19 has had a dramatic impact on the global economy. As the economic crisis deepened, the Wall Street Journal reported, “The nation’s bankruptcy industry is bracing for a wave of business collapses triggered by the coronavirus pandemic as its ranks have been thinned by a decade of economic growth.” Working on business bankruptcy assignments in 2020 will present a special set of challenges for experts based upon the COVID-19 pandemic. For many industries, and for many individual debtors, there may be a dearth of post-COVID operating information and widely varying views as to…
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Maybe I am reading too much into it, but l was struck by how the Ruth’s Chris Steak House in Lafayette, La. was packed on a mid-March Tuesday night. A year ago when I ate there, I was one of maybe a half-dozen people in the restaurant. Jeff K. Davis, CFA, Managing Director of Mercer Capital’s Financial Institutions Group, discusses how people’s reaction of being tight-fisted vs. loosening-up can change quickly based upon perceptions. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Reading the Tea Leaves at Ruth’s Chris Steak House in Lafayette. This article is…
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Cram Down Interest Rates (Part I of II) In this two-part series the author provides an overview of the issues confronted by courts and financial experts involved in a commercial real estate (CRE) bankruptcy. In this first part, the author discusses how a financial expert may go about to determine the appropriate interest rate for the underlying claims and analyze the CRE market. In the second part of this series, the author continues this discussion and provides examples that illustrate the approaches discussed in this two-part series.