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Email On February 16, 2011, the United States Court of Appeals for the Third Circuit ruled that a discounted cash flow analysis constituted "a commercially reasonable determinant[] of value" for purposes of section 562(a) of the United States Bankruptcy Code. In so doing, the court upheld the United States Bankruptcy Court for the District of Delaware decision sustaining the objection of American Home Mortgage Holdings, Inc. (the "Debtors") to the $478.5 million claim of Calyon New York Branch for damages related to the termination of a mortgage loan repurchase agreement. Calyon had taken the position that no commercially reasonable determinants of value existed on the termination date, and, in reliance on section 562(b) of the Code, calculated its claim based on the "market value" of the specific loans at issue one year after the termination date. https://www.cadwalader.com/resources/clients-friends-memos/third-circuit-upholds-use-of-discounted-cash-flow-method-under-bankruptcy-code-section-562-in-in-re-american-home-mortgage-holdings-inc-et-al