Case Studies: Bankruptcy

Kenrich Personnel Retained By A Multi-Billion Dollar Company To Assist On An Alleged Fraudulent Conveyance Matter

Kenrich personnel were retained by a multi-billion dollar mining company to provide expert testimony related to an alleged fraudulent conveyance. In this matter, the defendant had transferred a Peruvian mining company from a financially distressed U.S. subsidiary to an international subsidiary, allegedly to protect the valuable Peruvian company from U.S. bankruptcy court. The U.S. subsidiary subsequently filed for bankruptcy protection, and filed suit against its parent Mexican conglomerate. Our work included:

  • Performing detailed analyses of solvency of the U.S. subsidiary, including all 3 tests of solvency: balance sheet, ability to pay debts, and inadequate capital.
  • Determining reasonably equivalent value for the Peruvian company and the related consideration paid.
  • Analyzing the financial condition of the U.S. subsidiary and its peers in the mining industry at various points in time.
  • Reviewing the background of the individual entities over time, including the transaction and identifying indicia of insolvency.