Navigating Issues in Fraudulent Transfers

This panel discusses a number of valuation issues that frequently arise in assessing and litigating fraudulent transfer actions, including (1) valuing contingent assets and liabilities (e.g., environmental liabilities, pending litigation, guarantees, tax attributes, subrogation, contribution and reimbursement claims), (2) avoiding the use of hindsight in assessing solvency and adequate capital, and (3) the use of market-based evidence, including debt and equity trading prices, as well as contemporaneous investments of capital. The panel also discusses Merit Management Group LP v. FTI Consulting Inc., which is pending before the U.S. Supreme Court, regarding the applicability of the § 546(e) safe-harbor defense.