News & Resources

Olshan Bankruptcy Partners Publish Article About Lessons Learned From Genco Decision

October 24, 2014

Partners Michael Fox, Adam Friedman and Jordanna Nadritch authored the article “Genco Shipping: Valuation Lessons Learned from “Underwater” Equity" published by BNA Insights. The article discusses the pre-packaged chapter 11 case where equity holders fought for a recovery, the Bankruptcy Court for the Southern District of New York confirmed Genco Shipping’s chapter 11 plan, favoring an alternative asset-based valuation over the more widely accepted discounted cash flow method. The valuation approved by the bankruptcy court left equity underwater and demonstrates the practical and strategic implications involved in a valuation contest and discusses the key lessons to be learned from the Genco decision for both equity owners and investors.