Bankr. E.D.N.C.: In re L.L. Murphrey Co.- Hypothetical Amounts not allowed in Accounting

Summary: The Chapter 11 Plan for LLM provided that for the eventual reamortization of two notes, partially based on cash flow.  Ten years later when it came to recapitalize  the notes,  LLM and the note holder disagreed by nearly $5 million on the amount. Each party presented evidence from their separate accountants.  The note holder's accountant, however, included hypothetical figures into her calculation for "demonstrative purposes" and the court found there was no factual basis for these asserted amounts. In re L.L. Murphrey Co.- Hypothetical Amounts not allowed in Accounting.PDF