A Paradigm Shift for Valuation of Environmental Liabilities in Bankruptcy and Transactions
Hosted by Exponent in partnership with ERCI
May 8, 2019 - 11:00 AM PST
As disclosed environmental liabilities continue growing to record levels, bankruptcy remains a vital process in defining, quantifying and transferring obligations. Industry consolidation and disruption create narrow time windows for re-valuing environmental liabilities during corporate transactions, reorganization, liquidation or dissolution.

Bankruptcy reorganization and transactions present transitional situations in which an entity should
  • Implement fair value measurement for environmental liabilities (i.e., comprehensive valuation of liabilities based on current market conditions)
  • Close the gap between book and market value for those liabilities
  • Account for the factors that have led to past escalation of estimates for some liabilities

This webinar will address factors driving growth in environmental liabilities and will provide strategies for addressing these factors through the implementation of fair value measurement in the context of bankruptcy reorganization and transactions. The concepts presented in the webinar will provide tools to enable creditors, debtors, buyers and sellers to efficiently reach agreement on a reliable valuation of liabilities.

Who Should Attend:
  • Legal counsel and special masters in bankruptcy proceedings
  • Legal counsel involved in mergers, acquisitions, divestitures, and PRP groups
  • Corporate environmental and remediation program managers, especially those working down environmental liabilities (ASC 410-30) and asset retirement obligations (ASC 410-20)
  • Public agency remedial program managers, especially those working down pollution remediation obligations (GASB49) and AROs (GASB 83)
  • Insurers and insurance claims examiners
  • Entities informally guaranteeing counterparties at multiparty sites

What Attendees Will Learn About:
  • Trends in environmental liabilities
  • Evolution of accounting standards that are relevant to bankruptcy and transactions
  • The importance of using fair value measurement in bankruptcy and transactions
  • How to address cognitive biases in liability estimation
  • How to build and maintain reliable liability forecasts
  • How to address causes of liability growth, including remedy failure, counterparty failure, and emerging contaminants
  • Tools, best practices, and lessons learned from case examples for improving outcomes

Presenters:

Scott Shock, P.E., Senior Managing Engineer at Exponent – Mr. Shock has over 25 years of experience in assessment and management of environmental risks and liabilities for a variety of industry sectors, including resource extraction, manufacturing, utilities, and insurance. His focus areas include chemical transport and fate analysis and evaluation of remedial response actions and costs in due diligence and cost recovery matters. He employs a variety of cost-benefit, economic, and uncertainty analysis methods to help clients make informed and defensible environmental and risk management decisions. Since 2015, he has worked on ASTM committee efforts on standards development for ASTM E3123 (recognition/derecognition), and revisions to ASTM E2137 (liability estimation) and ASTM E2173 (liability disclosure).


John Rosengard, MBA, ERCI – Mr. Rosengard is President and CEO of ERCI, which assists dutyholders in understanding and reporting their environmental liabilities. He has developed tools and strategies to improve capital stewardship, track counterparty risk, evaluate remedial options, and forecast lifecycle costs for large cleanups. These tools have helped owners understand over 4,000 unique liabilities in sixteen corporate portfolios, with a book value over $20 billion and counterparty risk of $2 billion. Since 1994, ERCI’s work including reserve validation reports has been audited over 100 times by internal and external auditors. Mr. Rosengard has led ASTM committee efforts on standards development for ASTM E3123 (recognition/ derecognition), and revisions to ASTM E2137 (liability estimation) and ASTM E2173 (liability disclosure).

Bryan Pitts, P.E.,Managing Engineer at Exponent – Mr. Pitts has over 21 years of experience in the evaluation (historical operations, environmental conditions, remedies, regulatory compliance, and costs) and management of hazardous waste sites. He regularly provides consulting expertise in matters involving cost allocation and recovery, historical waste management standard of care, contaminant fate and transport, and the estimation of remedial costs and environmental liabilities. He has extensive experience with manufactured gas plant, PCB, wood treating, sediment, and Superfund sites, and participated as a technical lead in the valuation of the Tronox environmental portfolio in support of bankruptcy litigation.

For the webinar replay, click here.

To view and download the slideshow, click here


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