Lucian Bebchuk and Jesse Fried, "A New Approach to Valuing Secured Claims in Bankruptcy," 114 Harvard Law Review 2386-2436 (2001).
many business bankruptcies in which the firm is to be preserved
as a going concern, one of the most difficult and important problems
is that of valuing the assets that serve as collateral for secured
creditors. Valuing a secured creditors collateral is needed
to determine the amount of the creditors secured claim,
which in turn affects the payout that must be made to the creditor.
Such valuation has generally been believed to require either litigation
or bargaining among the parties, which in turn give rise to uncertainty,
delay, and deviations from parties entitlements.
Last updated: Dec. 2002
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