The ongoing drama between Ira Rennert and Ronald Perelman in a dispute over a joint venture reached another phase when a Delaware court appointed an independent appraiser to evaluate the assets. The two men have rejected appraisers on three other occasions, but Vice Chancellor John W. Noble selected Valuation Research to do the job, according to Delbizcourt.com
Noble chose Valuation Research at the recommendation of Perelman-led McAndrews AMG Holdings. Noble said Valuation “most closely meets the standards agreed to by the parties.”
Valuation research will appraise the holding company providing capital to the joint venture, Ilshar Capital, which is controlled by Perelman through McAndrews AMG. The latter obtained ownership of the company through its acquisition of AM General from Renco Group, which is controlled by Rennert.
Perelman claims that Rennert exploited the deal by securing a loan of $109 million from Ilshar to Renco. In another lawsuit, Rennert claims Perelman diverted $175 million from Ilshar to his own subsidiaries. Perelman wants a return of he loan to Renco, including principal and interest. Rennert wants McAndrews to cease including royalty fees and management expenses in its calculation of profits and to admit the credit facility extended by AM General as an “unfair and self-defeating transaction.”