REE Case Study: Expert Testimony Regarding Bankruptcy Reorganization Plan

The Challenge

RCLCO was retained by a custodian of bankruptcy trust to opine on the validity of a bankruptcy reorganization plan. The case involved a large regional community land development and homebuilding enterprise that slipped into bankruptcy as a result of the downturn in the market in the wake of the Great Recession.

Solution

RCLCO conducted a market analysis and prepared opinions of value of the remaining land and speculative home assets in the trust. RCLCO determined that the likely sales paces, absorption velocities, and, therefore, the values reported by the debtor in possession were grossly inflated and needed to be restated in a revised reorganization plan.