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Solvency Opinions

Short Description: 
A solvency opinion rendered at the time of the transaction is one of the most cost-effective ways to mitigate the risk of potential liability in bankruptcy for all parties to the transaction.

A solvency opinion is a document stating that a borrower is, and will remain, solvent under the burden of additional debt and is usually provided to protect the security position of the senior lenders and to protect selling shareholders, the board of directors and transaction advisors from having a transaction unravel in a future bankruptcy.

Transactions typically requiring solvency opinions are highly leveraged transactions, capital restructurings, and debt refinancings. Solvency opinions are generally prepared for lenders, boards of directors, buyers and sellers, and creditors.

VRC was one of the first providers of solvency opinions. We have prepared nearly 800 solvency opinions for transactions ranging from $15 million to over $9 billion in market capital.
 

  • VRC provided a solvency opinion for Intelligrated in connection with a leveraged dividend recapitalization transaction.
    Solvency Opinion

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