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How to Value Debt

Level: Advanced
Runtime: 68 minutes
Recorded Date: May 22, 2019
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  • Debt as an Asset
  • "Present Value" of Debt
  • Value of Debt in the 11 U.S.C. Sect. 1129 Context
  • Value of Debt in the 11 U.S.C. Sect. 363 Context
  • Value of Debt in the "Enterprise Value" Context
  • Conclusion
Runtime: 1 hour and 8 minutes
Recorded: May 22, 2019


There are two common scenarios in which the valuation of a company’s debt securities might need to be assessed. If the consideration under a bankruptcy plan includes debt, how do we determine whether that debt will trade at par, and what disclosure is required? If a buyer in a Section 363 sale proposes to issue debt as payment, how should this be valued? Are the considerations the same in these two scenarios?

This program was recorded as part of ABI's New York City Bankruptcy Conference on May 22nd, 2019.

Provided By

American Bankruptcy Institute
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David Hilty

Managing Director
Houlihan Lokey

Mr. Hilty is a Managing Director and Global Co-Head of Houlihan Lokey’s Financial Restructuring Group. He has been employed by the firm for more than 25 years and has advised companies, secured lenders, bondholders, and other creditor groups in out-of-court restructurings, prepackaged or prearranged Chapter 11 bankruptcies, and unplanned Chapter 11 reorganizations.

In addition, Mr. Hilty has been involved in the financial restructuring of several European and Latin American-based companies advising both debtors and creditors, including designing and structuring out-of-court exchange offers and prearranged reorganizations in local European and Latin American jurisdictions. He is based in the firm’s New York office. In addition to assisting clients with financial restructuring services, Mr. Hilty has provided clients with a variety of other investment banking and valuation services, including debt financings for distressed and non-distressed companies, advising on the acquisition or sale of companies and/or operating divisions in a distressed and non-distressed environment, and raising debt and equity capital.

Mr. Hilty holds a B.S. in Commerce with a concentration in Finance from the University of Virginia’s McIntire School of Commerce.

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Alice Belisle Eaton

Paul, Weiss, Rifkind, Wharton & Garrison LLP

A partner in the Restructuring Department, Alice advises creditor and debtor clients in corporate reorganizations and bankruptcies, with a focus on postpetition financings, exit financings and specialized finance structures. Her recent company-side matters include advising Animal Supply Company, Preferred Sands, Expro Holdings, Performance Sports Group and Foresight Energy LP, and recent creditor-side experience includes advising stakeholders in Neiman Marcus Group, Inc., PetSmart, Inc., Exide Technologies and an informal committee of certain holders of secured and unsecured notes of Chassix Inc. and Chassix Holdings, Inc.

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John D. Penn

Firmwide Chair, Bankruptcy & Restructuring Practice
Perkins Coie LLP

John D. Penn is the firmwide chair of Perkins Coie LLP’s Bankruptcy & Restructuring Practice in New York and Dallas. He is licensed by the Supreme Court of Texas and the Supreme Court, Appellate Division of New York in 2010, and has been an active bankruptcy and insolvency practitioner for almost 40 years.

Mr. Penn is a former ABI president and chairman, and he served as chairman and past president of the American Board of Certification. He has been Board Certified in Business Bankruptcy Law by both the American Board of Certification and the Texas Board of Legal Specialization for nearly 30 years.

Mr. Penn has written extensively on bankruptcy and reorganization topics. His work has been published in the ABI Law Review, the ABI Journal and a number of other publications.

Mr. Penn received both his B.B.A. and J.D. from Baylor University.

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Hon. Michael E. Wiles

U.S. Bankruptcy Court, Southern District of New York

Hon. Michael E. Wiles is a U.S. Bankruptcy Judge for the Southern District of New York in New York, sworn in on March 3, 2015.

Previously, was was a partner with Debevoise & Plimpton LLP, where he focused on general commercial litigation and bankruptcy. Judge Wiles co-authored the Collier Business Workout Guide (Mathew Bender 2007) and has appeared on panels organized by the Association of the Bar of the City of New York, the American College of Investment Council and others to discuss current issues in bankruptcy litigation. He is also a former member of the Committee on Bankruptcy and Reorganization of the Association of the Bar of the City of New York. His publications and written CLE materials include “May Parties Consent to Bankruptcy Court Adjudication of ‘Stern Claims’” (September 2014) (presented at a continuing legal education session at the Association of the Bar of the City of New York); “Ponzi Schemes and Avoidance Actions: 3 Issues,” Law360 (March 7, 2011); “The Good Faith Defense to Fraudulent Transfer Claims” (December 2010) (presented at a continuing legal education session at the Association of the Bar of the City of New York); and “At the Crossroads: The Intersection of the Federal Securities Laws and the Bankruptcy Code,” The Business Lawyer (November 2007).

Judge Wiles received his A.B. degree from Georgetown University in 1975 and his J.D. from Yale Law School in 1978.

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Marc J. Heimowitz

Founder & Managing Member
Coda Advisory Group, LLC

Marc J. Heimowitz is with Coda Advisory Group LLC in New York, where he focuses on distressed and special-situation investments. He frequently takes active roles in large capital structure restructurings, administration of ad hoc creditor committees, and bankruptcy-related litigations.

Previously, Mr. Heimowitz was a portfolio manager with Claren Road Asset Management and a managing director and head of credit special situations at and Citigroup, where he managed investments related to companies in stress or reorganization, including bankruptcy reorganizations and liquidations, out-ofcourt restructurings, rescue financings and distressed acquisitions. Prior to joining Citigroup, he was a senior credit analyst on the distressed trading desk at Merrill Lynch, managed distressed-debt and emerging market portfolios, and practiced law in both New York and Florida.

Mr. Heimowitz is a Charted Financial Analyst (CFA), holds Series 7, 24 and 63 licenses with FINRA, is a member of ABI and has published and lectured on U.S. transnational insolvency matters at the World Bank and other forums.

He received his B.S. in finance with highest honors from the University of Florida and his J.D. from Columbia University School of Law in 1993, where he was a Harlan Fiske Stone Scholar.

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