In a bankruptcy, financial projections play a significant role in many different aspects of the process. In many cases, the Court’s preference is to rely on management’s projections, as management usually has vast experience within the company. However, there are instances where projections produced...
The Michel-Shaked Group’s Israel Shaked (Managing Director) and Paul Dionne (Manager) discuss what quantitative bankruptcy prediction models are and how the discretion given to the financial expert applying these methodologies can lead to the abuse of the models in both bankruptcy and tax litigation settings....
In August 2018, the United States Tax Court filed its opinion on Illinois Tool Works Inc. & Subsidiaries (Petitioner) v. Commissioner. The Court ruled in favor of the Petitioner on all issues and determined that the intercompany loans were bona-fide debt for tax purposes....
In May 2018, the United States Tax Court issued an opinion in Dynamo Holdings Limited Partnership (Petitioner) vs. Commissioner, determining that related party loans were in fact debt. The Court found the Petitioner’s experts, Professor Israel Shaked and Dr. Bill Chambers of the Michel-Shaked...
In part-two of their article published in the April 2018 edition of Thomson Reuter’s Journal of Taxation, The Michel-Shaked Group’s Israel Shaked and Paul Dionne illustrate the work the authors performed and trial testimony that was provided in NA General Partnership vs. Commissioner tax case...
Numerous academic articles have examined when and under what circumstances related party debt, (e.g. indebtedness issued by one member of a consolidated corporate group to another), may be considered valid debt for tax purposes. Recently, the Michel-Shaked Group’s Israel Shaked (Managing Director) and Paul...
The valuation of relatively healthy companies involves many unknowns. However, the valuation of distressed companies includes additional elements of uncertainty. The Michel-Shaked Group’s Israel Shaked (Managing Director) and Brad Orelowitz (Senior Vice President) published an article in the Jan/Feb 2018 issue of the TMA’s Journal...
Our Managing Director, Israel Shaked, recently presented at the Institutional Investor’s Global Shareholder Activism Conference, co-sponsored by Grant & Eisenhofer. Dr. Shaked's presentation addressed the increased distress among retailers and the role played by private equity firms. He discussed the possibility of the...
Recently, newspapers and financial websites are full of articles discussing distress in the retail sector. The number of store closures and employee layoffs is increasing every week. This year, the number of distressed retail companies has been far greater than any other year in recent...