When companies with major environmental liabilities enter bankruptcy protection, corporate, environmental,
and bankruptcy considerations often intersect in complex and unpredictable ways. Government agencies, in
particular, may be faced with the difficult responsibility of maximizing the government’s recovery of
environmental liabilities that are difficult to value. This obligation is further complicated if a parent
company or affiliate previously transferred the assets of their subsidiaries leaving behind their bankrupt shells.
IEc assists clients in recognizing the warning signs of bankruptcy and in assessing the potential
ramifications on the unsecured financial obligations of creditors. In addition, we help clients navigate
the complex restructuring process of businesses in Chapter 11 reorganization.
- Evaluating disclosure statements and reorganization plans to determine if sufficient information is available to assess the impact on our client’s financial interests and crafting targeted requests, if not.
- Pro forma modeling of a company’s future cash flows and ability to satisfy claims under alternative restructuring plans.
- Determining reasonable estimates of a business’s future financial health given uncertainties in the industry and wider economy.
- Analyzing the effect of inappropriate transfers of assets, including whether the transferor was or could reasonably have been believed to be solvent or adequately capitalized at the time of the transfer and whether adequate consideration was received.
- Providing expert testimony in bankruptcy proceedings.