Valtech’s valuation team has recently completed valuation of several distressed debts and debt under restructuring. It is more challenging in valuing distressed assets as the uncertainty of valuation is much higher than usual asset valuation. Financial modellings and benchmarking techniques are well applied in the valuation process.

Debt market benchmarks, interest rates, general recovery data and recovery under various scenarios have been analysed before we arrive at the conclusion. Our approach is to perform reasonable allocation of value to different levels or tranches of debt holders while obtaining relevant market benchmarks as our model inputs if possible. Volatility of assets are also considered in our model. The valuation engagements assist our clients in obtaining a rational benchmark to support their decision makings facing various recovery options.