Whether a company is financially distressed, and, more precisely, whether it was solvent, either financially or economically as of a particular date, is often a key issue in fraudulent conveyance, bankruptcy matters, ability-to-pay assessments, breach disputes, and the evaluation of failing-firm conditions and flailing-firm defenses. Solvency is not a single concept: a company can be solvent in one sense and distressed in another. In addition, the relevant date in a legal dispute is often well in the past, requiring the analysis to be conducted using only the information available at that time. We have the expertise and experience to conduct the full set of widely accepted solvency analyses and standard tests recognized by courts, such as the Balance Sheet Test, the Cash Flow Test, the Capital Adequacy Test, and apply them to the facts of a given matter. Our work is based on widely-accepted and standard methodologies, frameworks, and analyses and we have been engaged by both plaintiffs and defendants in a wide range of industries in such matters.
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