Valuing collateral in bankruptcy
Abstract: A recent decision from the U.S. Court of Appeals for the Second Circuit provides a useful primer on how to value collateral for bankruptcy purposes. This article summarizes this complex case, which demonstrates the leeway given to bankruptcy when valuing collateral and the importance of providing reasonable, well-supported valuation analyses and methods. In re Sears Holdings Corporation, 51 F. 4th 53 (2nd Cir. 2022).