In re LMUSA Bankruptcy
Analysis Group academic affiliate Professor Roman L. Weil of the University of Chicago provided a valuation of the pre-bankruptcy assets and liabilities of LMUSA. Shortly before its bankruptcy, the company had sold a portfolio of purchased mortgage servicing rights (PMSRs) to CDC. The Trustee of the Creditor Committee of LMUSA sought to overturn this sale by showing that LMUSA was already bankrupt. In this action, Analysis Group ascertained the solvency of LMUSA at the time of the sale by valuing all of the assets and liabilities of LMUSA, including PMSRs, interest rate swaps, real estate, collateralized mortgage obligations (CMOs), and accounts receivable. We also valued certain subsidiaries held by LMUSA, as well as the parent of LMUSA, LFC.