In re Exide Technologies
United States Bankruptcy Court for the District of Delaware
303 B.R. 48 (2003)
Exide (debtor), seeking confirmation of its Chapter 11 reorganization plan over objection from the unsecured creditors' committee (defendant), and the committee both used the same general valuation methods but reached sharply different results, $950 million to $1 billion for Exide versus $1.4 billion to $1.7 billion for the committee, because Exide made downward adjustments meant to reflect the company's depressed current market position as a bankrupt entity, while the committee used a more straightforward approach; the committee argued Exide's approach undervalued the company in a way that would let certain creditors recover more than their full claims at unsecured creditors' expense.
Whether the court has wide discretion to determine the value of property in bankruptcy proceedings, or is instead bound by the parties' valuation methods or opinions.