On February 16, 2011, the Third Circuit affirmed a Delaware bankruptcy court's order determining the value of mortgage loans in the context of a 2006 repurchase agreement. Buyer Calyon argued that the mortgage loan portfolio sold to it by American Home Mortgage had a market price of only $670 million, as compared to its $1.15 billion contractual repurchase price, and that American Home Mortgage was required to pay Calyon the $480 million difference under a repo agreement. American Home Mortgage on the other hand contended that the portfolio was worth more than the $1.15 billion purchase price. In a case of first impression, the Third Circuit agreed with the bankruptcy court that American Home Mortgage's discounted cash flow valuation was a "commercially reasonable determinant of value" as required under the Bankruptcy Code and that consequently there were no damages. Decision.