What Did the Parties Really Intend: Computation of Default Interest
A PMCG Principal provided testimony to the Bankruptcy Court explaining
the application of a complex interest rate formula. The testimony
clarified industry practice for computation of interest rates
pre and post default, and helped establish the likely intent
of the parties at the time the contract was signed.
Things are Not Always What They Seem: Fraudulent Conveyance
A PMCG Principal helped the Bankruptcy Court understand how value was transferred from a solvent subsidiary to the insolvent bankrupt parent through a complex refinancing. The PMCG Principal was able to provide the Court with a clear accounting of the value tranfer between the subsidiary and parent. PMCG work on this project included trial exhibits showing the analysis of the operations and cash flows, on a consolidated and consolidating basis, before and after the refinancing.
Whose Responsibility Is It: Fiduciary Duty - Underwriting
Does the bank, financing the management buyout of a subsidiary, have a fiduciary duty to the selling parent company? This question was succinctly answered by a PMCG Principal with extensive industry experience and a background in loan underwriting. The opinion was confirmed by the judge when the bank won its case and was excused on a summary judgment motion. The plaintiff, however, continued to seek $900,000,000 in damages from the remaining defendants in the case.
Not the Gym: Fiduciary Duty Workout
A bank, engaged in a real property workout, is not required
to assume additional risk simply to protect a speculative
profit that might be realized by the owner at some undefined
time in the future. This seemingly sensible conclusion was
established by a PMCG Principal who provided the analysis
of industry and regulatory practices supporting this opinion.
Take Care of the Pennies and the Dollars Will Take Care of
Themselves: Preventing Negligence
A bank client was preparing its summary judgment motion against an accounting firm that was grossly negligent during its audit when it thought it needed a clarification to solidify its position. After a PMCG Principal assisted in the review and writing of the motion, the bank recovered a substantial portion of its loss through a settlement that occurred after the motion for summary judgment.
