CIGA Restructuring Plan - A Valuer's Perspective FRP

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CIGA Restructuring Plan: A valuer’s perspective 10 plans in After 10 sanctioned Restructuring Plans (and one declined) it is evident that valuation is key to supporting the court’s decision- making process and a focal point for potential challenge. Valuation under the relevant alternative is the key to comparing Plan outcomes to those under the most likely counterfactual, and to demonstrating the fairness of a cross-class cram down where relevant. With the onus on proposing companies to provide the necessary evidence in support of a Plan, understanding and applying valuation best practice is critical in assessing the relevant alternative and proving the hypothesis that no party is worse off. Soundings from the first 10 Plans provide a helpful insight into what the process requires from a valuation perspective, and how expectations of the court are developing and building on the experience of valuation analysis in Schemes of Arrangement.

With the onus on proposing companies to provide the necessary evidence in support of a Plan, understanding and applying valuation best practice is critical in assessing the relevant alternative and proving the hypothesis that no party is worse off. Jim Davies Corporate Finance

Jim Davies Partner Corporate Finance - Valuation +44 (0)20 3005 4000 +44 (0)7841 829 826 jim.davies@frpadvisory.com

Phil Reynolds Partner Restructuring Advisory

+44 (0)20 3005 4270 +44 (0)7970 061 066 phil.reynolds@frpadvisory.com

Chad Griffin Partner Restructuring Advisory

+44 (0)330 055 5470 +44 (0)7789 920 997 chad.griffin@frpadvisory.com

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