Damages

Damages estimation is the calculation of gains and losses to market participants under alternative counterfactual scenarios. While simple in concept, it requires a fundamental understanding of the economics underlying a damages claims and a careful consideration of all relevant costs and benefits. Our extensive backgrounds in economics and finance and our experience with a wide range of markets and financial structures allows us to produce robust and insightful analysis while avoiding common pitfalls of damages estimation.

Selected Case Experience

ICC Dispute

Damages Related to Capital Structure

In an arbitrated dispute before the International Chamber of Commerce, Claimants alleged that an undisclosed tax liability (in connection with an acquisition) adversely affected their ablity to issue debt, and sought damages related to the use of a “sub-optimal” capital structure.  Working on behalf of the Respondents, and for the law firm of White and Case, CFP’s Dr. Fenn  analyzed the acquired firm’s debt capacity and the value of issuing additional debt.  Dr. Fenn concluded that damages were, at most, equal to 10% the level claimed by Claimant’s expert.  Following the submission of several rounds of expert reports, Respondents withdrew their expert.

Pricing Securitized and General Obligation Bonds

AIG et al. v Sears

Sears was one of the first companies to securitize its credit card receivables. In this dispute with its bond holders, Cambridge Finance Partners was asked to analyze the pricing and market response of all of Sears’ bonds including general obligation bonds, those secured by credit card receivables and those involving a provision that allowed Sears to call its bonds in the event of a large decline in receivables. A central component to this study was …read more

Analysis of Claims Trading Order

Dana Corp. Bankruptcy

Attorneys for Dana Corp. asked Robert Noah to analyze the impact of a Bankruptcy Court issued claims trading order. …read more