Bankruptcy Litigation
Bankruptcy litigation occurs when the debtor or creditor files a petition of bankruptcy with the state. Valuation firms can offer support in the form of business valuation, liquidation analysis, cash flow and capital structure assessments, preference litigation, and fraudulent conveyance analysis.
The Purpose
When companies file for bankruptcy, valuing their assets can help to reimburse some of the debt. Assets that are not evaluated, or not value using an appropriate methodology, can result in an inaccurate value, affecting the amount of debt that could be paid off.
Trigger Events
- Loss of major client
- Loss of key employees
- Loss of workforce
- Loss of market share
Scalar’s Services
When navigating the steps of bankruptcy, companies may face a daunting litigation process. Scalar’s experienced team provides a full range of bankruptcy support services including business valuation, liquidation analysis, cash flow and capital structure assessments, preference litigation, and fraudulent conveyance analysis.