Expert Testimony, Due Diligence, Asset Valuation, and Cash Flow Forecasting for a Large Mortgage Banking Firm Bankruptcy Case

Due to market conditions arising from the ABS market crash in late 1998, one of the leading high LTV home equity finance companies suffered irrecoverable damage to its business operation and ultimately went out of business. 

Selected for its expertise from among 30 contenders, Boston Portfolio Advisors was hired to represent the Unsecured Creditors Committee in the bankruptcy case to help ensure that any settlement reached was the best possible for the unsecured creditors.  Boston Portfolio Advisors provided expert testimony, due diligence, asset valuation, and cash flow forecasting:

  • We provided expert testimony to help the court evaluate motions regarding the distribution of the Debtor’s assets.
  • We performed an extensive due diligence review of 1200 of the Debtor’s loans.  This thorough review, which encompassed underwriting guidelines, regulatory compliance, electronic data accuracy and payment histories, aided us in evaluating the true nature of the portfolio and enabled us to more accurately value the portfolio for the creditors.
  • Based on our extensive due diligence, Boston Portfolio Advisors valued the Debtor’s loan portfolio, servicing portfolio, and securitization residuals.
  • Boston Portfolio Advisors provided cash flow analysis and used the Debtor’s cash flow model to provide cash flow projections of the Debtor’s residuals for the creditors.  This involved reviewing the Debtor’s cash flow model and assumptions and testing it for appropriateness, and then providing the key assumptions that were “plugged into” the Debtor’s cash flow model used to make the cash flow projections.  Our extensive due diligence of the Debtor’s loan portfolio and review of their cash flow model gave us a high degree of confidence in our key assumptions and projections.
  • We used our projected cash flows to model several secured creditor settlements and testified in court regarding the viability of these settlements. 

Note:    Actual client names have been removed due to confidentiality issues.