What goes into a fair claim valuation

When we quote a creditor claim, the number reflects a careful assessment of what the underlying estate is likely to return — and when. A transparent process matters, because creditors deserve to understand how their offer was reached.

What we assess

1. Estate assets and shortfall. What is recoverable, and how large is the gap between assets and liabilities?
2. Claim priority. Where does the claim sit in the waterfall of distributions?
3. Timeline. How long is the restructuring or bankruptcy likely to take?
4. Legal and execution risk. What could change the expected recovery along the way?

Turning analysis into a price

Each of these factors feeds into a single question: what is a future, uncertain recovery worth in cash today? A claim that sits high in the repayment waterfall, against an estate with substantial recoverable assets and a short timeline, is worth more than a junior claim against a depleted estate facing years of litigation.

We discount the expected recovery to reflect both the time value of money and the risk that the outcome falls short. The result is an offer that is fair to the creditor and sustainable for us — not a lowball number, but not a promise we cannot stand behind either.

Transparency by default

We explain the reasoning behind every offer. Creditors can see which assumptions drive the valuation, ask questions, and walk away at any point. There is no fee to request a quote and no obligation to accept one.

Why creditors choose liquidity now

A future recovery is uncertain and often years away. Selling a claim converts that uncertainty into capital today, with the downside risk transferred to us. For many creditors, the value of certainty — and the freedom to put capital back to work — outweighs the chance of a larger payout at an unknown future date.