Consulting

BANKRUPTCY/INSOLVENCY

Chapter 11 and Chapter 7 bankruptcies can involve complex financial litigation and investigatory issues. Gettry Marcus assists creditors’ committees, trustees, secured creditors, debtors, and attorneys, among others. Because of our financial forensic accounting and business valuation capabilities, in conjunction with our CPA experience, we are particularly adept at providing critical investigative and analytical services at key junctures in the bankruptcy process.

Throughout the bankruptcy/insolvency process, financial professionals with business and financial acumen identify key issues, develop strategies, and work to achieve a successful outcome. We understand the dynamics of the parties’ diverse interests in distressed situations and the need for timely and credible information upon which to make decisions. At Gettry Marcus, our bankruptcy specialists have the experience and expertise to efficiently assist attorneys in their litigation efforts.

We maintain active roles in many professional organizations in our disciplines, and contribute articles to nationally recognized peer reviewed journals and publications. We have attained the highest level of credentials within our profession and serve as national instructors and lecturers to various professional groups, including state CPA organizations, on various business valuation and forensic accounting topics.

Services Offered

For Creditors’ Committees, Trustees And Creditors

  • Assess the feasibility of the Plan of Reorganization and analyze alternative scenarios
  • Assist in resolving issues with taxing authorities
  • Assist in settlement negotiations
  • Critique and rebut the opposing expert’s report
  • Fraud investigations
  • Investigative services
  • Perform a valuation analysis related to motions for adequate protection
  • Perform claims analysis and reconciliation
  • Prepare delinquent and current tax returns
  • Prepare expert reports and affidavits
  • Prepare or critique an insolvency analysis
  • Prepare or review a liquidation analysis
  • Provide expert witness and testimony services
  • Review Monthly Operating Reports
  • Review the debtor’s books and records for suspicious transactions
  • Search for potential preferential payments and fraudulent transfers

For Debtors

  • Assess the going concern viability of the business, and causes of its financial distress
  • Assist in developing a Plan of Reorganization and determination of liquidation value
  • Assist in preparing Monthly Operating Reports
  • Assist in preparing the bankruptcy petition, statement of financial affairs, and related schedules
  • Assist in resolving issues with taxing authorities
  • Assist in settlement negotiations
  • Investigative services
  • Perform claims analysis and reconciliation
  • Prepare delinquent and current tax returns
  • Prepare or refute a solvency analysis
  • Prepare or review cash flow analyses and projections
  • Provide expert witness and testimony services

Bankruptcy/Insolvency Case Studies

Assignment :
Gettry Marcus was retained by a large creditor of a hospital that had filed for bankruptcy protection. Due to an administrative oversight, our client failed to timely secure a loan made to the hospital prior to the hospital’s filing for bankruptcy. Our assignment was to prove that the hospital was solvent at a certain date prior to the bankruptcy filing, thereby allowing our client’s claim to be considered secured. Our tasks also included the critiquing of our opposition’s expert report demonstrating insolvency.

Result :
Our thorough analysis and computation demonstrated that the hospital was solvent on the agreed upon date and several subsequent alternative dates. We were able to successfully convey this at deposition. In addition, we assisted counsel in drafting questions that resulted in impeaching our counterpart’s conclusions. Our efforts resulted in the matter being settled with our client receiving repayment of nearly 100% of the original loan amount.

Assignment :
We were engaged by an international financial institution, which was the main secured creditor in a Chapter 11 proceeding, to verify the accuracy of the debtor’s collateral reports, review monthly bankruptcy report filings and prepare an analysis of potential preferential payments.

Result :
During our analysis of the accounts receivable, we uncovered major defalcations in the aging schedule and a lack of disclosure that the two largest customer receivable balances were being disputed in litigations. Our physical examination and review of the inventory records revealed that a large percentage of the company’s inventory was obsolete. Our preference analysis concluded that a majority of the pre-petition payments were to insiders. As the result of our findings, the financial institution was able to minimize further exposure of its loan and have a Receiver appointed.

All Case Studies