POST STREET, LLC

Case Highlights

• Developed a discount rate using the blended market rate methodology
• Determined whether the plan of reorganization of high-end retail real estate was feasible

Case Narrative

DSI was retained as an expert by the counsel of Post Investors, LLC  to provide an expert report and testimony, if required, regarding the secured creditor’s objection to confirmation of the Plan of Reorganization of a high-end real estate property located in San Francisco, CA.  DSI used the blended market rate methodology to develop the discount rate the secured creditor would be entitled to receive as part of the plan.  In order to develop the discount rate, capital market participants that provide debt and equity financing for similar types of assets were surveyed.  This market driven data is then used as a proxy to calculate an informed discount rate that reflects the risk of the treatment of the secured creditor and adequately compensates the creditor for assuming that risk.  This matter was settled.