Monday, November 28, 2016

Bankruptcy Filing Affidavit Claims the Price of NYC Taxi Medallions As Low As $250,000

A recent Chapter 11 bankruptcy filing of a taxi medallion owner placed the value for New York City (NYC) taxi medallions as low as $250,000.

Evgeny Freidman on November 14 filed for bankruptcy protection regarding three New York City taxi medallions.

According to the affidavit, the entry of Uber and Lyft into the New York market has caused taxi revenues to fall by 45 percentt,

As a result, "Medallion owners ... can no longer demand the $2,000 or $2,500 per month rent per Medallion lease." The going lease rate is now about $1,500 per month.

This decline in revenues has caused taxi medallion values to plummet precipitously.

According to the affidavit,

The current value of the Medallions is based on sales, and is difficult to determine, but without question it has fallen precipitously since the February 2014 TLC auction prices. Based on some recent auction results, the value is perhaps as low as $250,000 each, but certainly, in my opinion, no more than $500,000 each.

If the price of taxi medallions is $250,000, this could signify large potential losses to the National Credit Union Share Insurance Fund from undercapitalized taxi medallion lending credit unions.

Read the court filing.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.