Bloomberg News: In Covid Bankruptcy Valuation Brawls, the Best Spreadsheet Wins

September 09, 2020

O’Melveny Bankruptcy Litigation Group leader Peter Friedman is quoted in this Bloomberg News article, which discussed the increased challenges of valuing bankrupt enterprises amid the pandemic. With revenues, expenses, cash flows, and net income all impacted by the outbreak, creating an agreed-upon model of what a company is worth has become significantly more difficult, which in turn impacts creditors’ recovery potential, the publication noted.

“Right now we’re in a particularly volatile phase in terms of what value is going to look like,” Friedman said. “There are often huge amounts of money at stake -- I would expect parties that can’t consensually resolve outcomes will be ready to litigate valuation.”

Bloomberg News subscribers can read the full article here.