Insolvency and Restructuring Update
In re American Home Mortgage Holdings, Inc.

Created date


In a recent decision, Judge Christopher S. Sontchi of the Delaware Bankruptcy Court concluded that "commercially reasonable determinants of value" as referenced in section 562 of the U.S. Bankruptcy Code for purposes of measuring damages resulting from the rejection of a repurchase agreement are not limited to the actual sale or market value of an asset but that a discounted cash flow valuation can also be utilized. Also of note is the court's analysis of how to value a portfolio of assets in distressed market conditions.