Elixir Corporation has just filed for bankruptcy. Elixir is a holding company whose assets consist of real estate worth $80 million and 100% of the equity of its two operating subsidiaries. It is financed partly by equity and partly by an issue of $400 million of senior collateral trust bonds that are just about to mature. Subsidiary A has issued directly

$320 million of debentures and $15 million of preferred stock. Subsidiary B has issued

$180 million of senior debentures and $60 million of subordinated debentures. A’s assets have a market value of $500 million and B’s have a value of $220 million. How much will each security holder receive if the assets are sold and distributed strictly according to precedence?

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