Tort-system liabilities often create significant challenges for defendant corporations not only from their earnings impact, but also in their inherent uncertainty and the major distraction they can represent for management. Defendant corporations evaluating strategic alternatives for managing those liabilities are increasingly turning to a form of solvent restructuring in which the liabilities are disaffiliated to a qualified counterparty. KCIC has been retained in numerous such solvent reorganizations representing both defendant companies and potential acquirors of the subject tort-system liabilities. While asbestos is the class of liability that has been most commonly the subject of such solvent reorganizations, other classes of liability are also receiving significant interest.   KCIC’s core expertise in rationalizing large datasets of claims data, forecasting future activity and liability, and assessing the quality and quantity of relevant insurance assets is at the heart of the evaluation and pricing of these transactions.  KCIC is able to assist participants in their assessment of the viability of transactions by drawing on decades of experience analyzing complex tort and environmental obligations. Our team provides the financial, operational, and strategic insights necessary to understand the implications of potential divestiture opportunities.

We assist clients in evaluating liability portfolios, estimating future costs, developing valuation analyses, and assessing transaction alternatives. Our work often supports discussions among corporate leadership, boards of directors, financial advisors, legal counsel, insurers, and transaction counterparties.

Whether an organization is exploring a potential transaction, evaluating strategic alternatives, or navigating an active divestiture process, KCIC provides objective analysis and informed guidance to support confident decision-making.