Stout assisted a publicly traded glass tableware manufacturer after it filed for Chapter 11 bankruptcy. The company had been experiencing economic headwinds from the pandemic and had a diminished ability to generate sufficient cash flow to cover existing debt obligations and refinance.

As part of the Chapter 11 process and emergence, Stout calculated the reorganization value of the company and its five reporting units as well as the fair value of the company’s personal property, real property, intangible assets, and certain preferred shares that were issued in conjunction with the reorganization.

Stout’s valuation was performed under Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 852, Reorganizations, and related accounting promulgations, including ASC Topic 805, Business Combinations, and ASC Topic 820, Fair Value Measurement. The company utilized Stout’s analysis to satisfy its financial reporting requirements upon emergence.

Stout’s valuation team worked over several months with the company’s accounting, finance, and leadership team. Additionally, Stout collaborated with various other advisors that the client engaged through the bankruptcy process, including accounting advisors. Stout’s valuation was also reviewed by the company’s auditor as part of the financial reporting process.

The company successfully emerged out of Chapter 11 bankruptcy as a reorganized private entity with a stronger balance sheet upon emergence.