With the rise in the number of mergers and acquisitions taking place in today's business environment, there will undoubtedly be a rise in the number of bankruptcies. Completely updated, Bankruptcy and Insolvency Accounting, Seventh Edition, Volume 2 updates the most recent forms and exhibits as a result of the new Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). The process of turning around a troubled business and restructuring its financial aspects is thoroughly described for controllers, CEOs, CFOs and CPAs with small businesses as clients.
Autorentext
Grant W. Newton, CPA, CIRA, CMA, is Professor of Accounting at the Graziadio School of Business and Management at Pepperdine University and is Executive Director of the Association of Insolvency and Restructuring Advisors. He is the author of Corporate Bankruptcy: Tools, Strategies, and Alternatives (2003) and Bankruptcy and Insolvency Taxation (2005), both from Wiley. His articles have appeared in a large number of professional periodicals. He received his PhD from New York University, Master's from the University of Alabama, and BS from the University of North Alabama.
Inhalt
About the Author vii
Preface xv
Part One Bankruptcy and Insolvency Environment 1
1 Accountant's Role in Perspective 3
1.1 Parties Served by Accountants and Financial Advisors 3
1.2 Services Often Rendered by Accountants and Financial Advisors in Business Turnarounds, Bankruptcies, and Reorganizations 4
2 Economic Causes of Business Failures 7
2.1 Illustration of Altman's Z-Scores (REVCO) 7
Part Two Legal Aspects of Bankruptcy and Insolvency Proceedings 17
3 Turnaround Process 19
3.1 Turnaround Tool Box, Situation Analysis, First Few Weeks 19
3.2 Turnaround Tool Box, Situation Analysis Checklist 20
3.3 Turnaround Tool Box, Peer Group Analysis 38
3.4 Turnaround Tool Box, Cash Flow Analysis 43
4 Out-of-Court Settlements 49
4.1 Composition or Extension Agreement with Creditors 49
4.2 Agreement with Creditors and Debtor and Debtor's Solicitation Letter (Disclosure Statement) 60
4.3 Settlement Agreement with CreditorsOut-of-Court 66
4.4 Restructuring Significant Amount of Debt Out of Court 79
4.5 Recapitalization of Partners Interest with Purchase of New Equity 81
4.6 Court Order Approving Blue Bird's Prepackaged Bankruptcy 87
5 Nature of Bankruptcy and Insolvency Proceedings 97
5.1 Voluntary Petition 97
5.2 Section 503(b)(9) Motion and Order to Pay Critical Vendor Claims 117
5.3 Section 503(b)(9) Motion and Order to Pay 503(b)(9) Expenses 131
Part Three Accounting Services 143
6 Rehabilitation Proceedings under the Bankruptcy Code 145
6.1 Motion and Order Authorizing the KMIP Plan of Reorganization Metric Payment 145
6.2 Checklist for Determining the Merits of Substantive Consolidation 160
6.3 U.S. Trustee's Opposition to Appointment of Interim CEO and Request for Trustee Appointment 163
6.4 Application for Order Approving Appointment of Trustee 171
6.5 Appointment of Examiner with Expanded Powers 178
6.6 Appointment of Examiner or Mediator in Plan Negotiations 185
6.7 Cash Collateral Order 193
6.8 Use of Cash Collateral and Debtor-in-Possession Financing for Tower Automotive 197
6.9 Priming of Prepetition, First Lien 218
6.10 Bankruptcy Court Guidelines/Orders for Motions Relating to Financing Agreements 218
6.11 Debtor-in-Possession Financing Agreement: No. 1 227
6.12 Disclosure Statement 244
6.13 Data Checklist for DIP Financing 275
6.14 Factors Determining Success of Plan 276
6.15 Plan of Reorganization 280
6.16 Disclosure Statement Review Checklist 320
6.17 Sample Disclosure Statement by Unsecured Creditors' Committee (Selected Items) 323
6.18 Sample Disclosure Statement for Involuntary Filed Petition (Selected Data) 370
6.19 Standing Chapter 12 Trustee's Instructions to Debtor's Counsel 389
7 Retention of the Accountant and Fees 393
7.1 Protocol: Separating Interim Management from Financial Advisory Functions 393
7.2 Declaration of Financial Advisor in Support of Debtors' Application to Be Retained to Provide Fresh Start Reporting and Valuation Services 396
7.3 Affidavit for Retention of Financial Advisor for Debtor 420
7.4 Affidavit of Accountant for Unsecured Creditors' Committee 437
7.5 Affidavit of Investment Banker Filed Prior to Retention by Debtor 441
7.6 Debtors' Application for Retention of Financial Advisor to Provide Fresh Start Reporting and Valuation Services 478
7.7 Application by Debtors for Authorization to Retain Financial Advisor 488
7.8 Application for Order Authorizing Retention of Accountants and Financial Advisors for Trustee 492
7.9 Application Retaining Financial Advisor for Unsecured Credit Committee 499
7.10 Declaration of Subsequent Connections 544
7.11 Order Authorizing Retention of Financial Advisor to Provide Fresh Start Reporting and Valuation Services to Debtors 577
7.12 Order for Retention of F...