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Now assess your risk levels in restructuring and Chapter 11 negotiations in more complex real world situations with Version 2.0 of the Restructuring Toolkit.


When negotiating a restructuring, it is important to understand not only the technical legal rights of the parties but also the impact that the Debtor's valuation and its uncertainties has on those rights. The technical legal rule most often utilized in evaluating claims in a bankruptcy proceeding is the absolute priority rule, requiring senior creditors to be paid in full prior to junior creditors receiving anything. The tricky part comes in applying the rule where the valuation is uncertain and, in many cases, cannot be known with certainty during the bankruptcy proceedings.

The Restructuring Toolkit can be used to evaluate the impact of different valuation scenarios on the ultimate recovery to each class of creditors, identifying potentially rational bargains based on the range of possible outcomes. With Version 2.0, the Toolkit now evaluates risk with additional levels of uncertainty and models significant mass tort situations, complex capital structures, uninsured administrative costs of defense, and insurance contributions.

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