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T-3
WALTER INVESTMENT MANAGEMENT CORP filed this Form T-3 on 11/06/2017
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VIII.

VALUATION ANALYSIS

The Company has been advised by Houlihan Lokey with respect to the reorganization equity value of the Reorganized Company on a going concern basis.

THE VALUATION INFORMATION CONTAINED HEREIN IS NOT A PREDICTION OR GUARANTEE OF THE ACTUAL MARKET VALUE THAT MAY BE REALIZED THROUGH THE SALE OF ANY SECURITIES TO BE ISSUED PURSUANT TO THE PLAN OR OF THE PRICES AT WHICH ANY SUCH SECURITIES MAY TRADE AFTER GIVING EFFECT TO THE TRANSACTIONS CONTEMPLATED BY THE PLAN. THIS VALUATION IS PRESENTED SOLELY FOR THE PURPOSE OF PROVIDING ADEQUATE INFORMATION AS REQUIRED BY SECTION 1125 OF THE BANKRUPTCY CODE TO ENABLE THE HOLDERS OF CLAIMS ENTITLED TO VOTE TO ACCEPT OR REJECT THE PLAN TO MAKE AN INFORMED JUDGMENT ABOUT THE PLAN AND SHOULD NOT BE USED OR RELIED UPON FOR ANY OTHER PURPOSE, INCLUDING THE PURCHASE OR SALE OF CLAIMS AGAINST THE DEBTORS.

Solely for purposes of the Plan and the Disclosure Statement, Houlihan Lokey, as financial advisor to the Company and at its request, has estimated the total equity value (inclusive of the newly issued preferred stock, the “Total Equity Value”) of the Reorganized Debtor and its direct and indirect subsidiaries (the “Reorganized Company”) on a going concern basis as of the Assumed Effective Date. The valuation analysis is based on the Projections for the periods ending December 31, 2017 through December 31, 2020 (the “Valuation Period”).

In estimating the Total Equity Value of the Reorganized Company, Houlihan Lokey met with the Company’s senior management team to discuss the Company’s assets, operations and future prospects, reviewed the Company’s historical financial information, reviewed certain of the Company’s internal financial and operating data, reviewed the Projections, reviewed publicly available third-party information and conducted such other studies, analyses, and inquiries Houlihan Lokey deemed appropriate. Further, with the consent of the Company, Houlihan Lokey has relied upon the accuracy, completeness, and fairness of such financial and other information furnished by the Company. At the direction of the Company, Houlihan Lokey did not attempt to independently audit or verify such information, nor did it seek or perform an independent appraisal of the assets or liabilities of the Reorganized Company. Houlihan Lokey did not conduct an independent investigation into any of the legal, tax, pension or accounting matters affecting the Company, and therefore takes no responsibility for and makes no representation as to their impact on the Company or the Reorganized Company from a financial point of view. The Projections, which inform the Valuation Analysis, do not reflect the adoption of fresh start accounting.

The valuation information represents a valuation of the Reorganized Company based on the application of standard valuation techniques, subject to the assumptions and qualifications set forth herein. The estimated values set forth in Section: (i) do not purport to constitute an appraisal of the assets of the Reorganized Company; (ii) do not constitute an opinion on the terms and provisions or fairness from a financial point of view to any person of the consideration to be received by such person under the Plan; and (iii) do not necessarily reflect the actual market value that might be realized through a sale or liquidation of the Reorganized Company. The actual value of an operating business such as the Reorganized Company’s is subject to uncertainties and contingencies that are difficult to predict and will fluctuate with changes in various factors affecting the financial conditions and prospects of such a business.

 

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