Valaris’ assessment leads to ch. 11 Denial of the fairness committee

Law360 (December 9, 2020, 10:39 p.m. EST) – A Texas bankruptcy judge dismissed a petition seeking the appointment of an official fairness committee Wednesday night in the Chapter 11 case of offshore oil driller Valaris, claiming that valuation of the company would leave shareholders far out of the money.

In a virtual hearing, U.S. bankruptcy judge Marvin Isgur said the evidence showed that the fair market value of Valaris PLC’s assets was far less than the amount of its debt, leaving shareholders about $ 5 billion in debt. recovery under the absolute priority rule of the bankruptcy code. .

“There is an arrangement contained in the plan which nevertheless gives a return on equity, …

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