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getsetgo, MBA
Category: Homework
Satisfied Customers: 3486
Experience:  MBA from IIM Calcutta, Engineer, 8+ years of exp. at executive level
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The mortgage bonds are secured by plant, but not by the equipment.

Customer Question

The mortgage bonds are secured by plant, but not by the equipment. The subordinated debentures are subordinated to notes payable. The firm was unable to reorganize under Chapter 11; therefore, it was liquidated under Chapter 7. The trustee, whose legal and administrative fees amounted to $200,000, sold off the assets and received the following proceeds (in thousands of dollars):

Asset     Proceeds
Plant     $1,800
Equipment      1,200
Receivables           80
Inventories        400
Total     $3,480

In addition, the firm had $20,000 in cash available for distribution. No single wage earner had over $2,000 in claims, and there were no unfunded pension plan liabilities.

a.     What is the total amount available for distribution to all claimants? What is the total of creditor and trustee claims? Will the preferred and common stockholders receive any distributions?
b. Determine the dollar distribution to each creditor and to the trustee. What percentage of each claim is satisfied?
Submitted: 7 years ago.
Category: Homework
Expert:  getsetgo replied 7 years ago.

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Customer: replied 7 years ago.

Thank you very much for the answers, is there any way you can show me the caclulations you used, or excel functions, to obtain them? I am trying to learn how to do this for myself.




Expert:  getsetgo replied 7 years ago.
most of teh items are taken from the data you have provided. whenever I calculated something, you can see in formula bar of excel how it is calculated. If you could point out the specific point where you want explanation, it will be helpful.
Customer: replied 6 years ago.
Thank, this question is now closed.

Dear Administrator Please delete - question complete

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