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Creditors must be provided, under the plan, the going concern value of their claims.
Accountants are traditionally reluctant to accept value as the basis of asset measurement in the going concern.
The going concern basis was clearly not appropriate, and PVH did not include MG Rover's figures because consolidated accounts were not prepared.
The brief also says that one of the strategic effects of an appraisal right is that it can act to set a kind of reserve price in a company auction, pegged at the going concern value of the seller.
It seems doubtful this is consistent with the original vision of Chapter 11 as a means to maximize the going concern value of companies, for the benefit of all stakeholders.
The going concern value contemplates a "comparison of revenues and expenditures taking into account the taxing power and the extent to which tax increases are both necessary and feasible" Municipal Insolvency, supra, at p. 64, and is intended to provide more of a return to creditors than the liquidation value if the city's assets could be liquidated like those of a private corporation.
Similar(44)
The process ensures maximum difference between the scores of the failed and the going concerns.
The looters who rampaged through Bishkek for two nights after the uprising targeted businesses they thought belonged to the Akaev family, widely believed to have grabbed most of the going concerns.
Anyway, before Charlie Schroeder opened his first place, the Podval was the only going concern in town, not the least because it boasted the only publicly available international telephone.
The proposed deal is for the sale of the assets of the business as a going concern and the retention of all staff.
"It neither maximizes value for the benefit of unsecured creditors nor provides for the other benefits of a going concern," the committee wrote in the court filing.
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CEO of Professional Science Editing for Scientists @ prosciediting.com