19. Liquidations in bankruptcy When a business is worth more if its assets are sold than if it continues to operate, then the business is liquidated, and the proceeds from the sale are used to satisfy any outstanding debt. distribution of the debtor's assets among the creditors. The distribution of assets is governed by a certain priority of claims. Which of the following claimants has the highest priority according to Chapter 7? Federal taxes due Secured creditors Unsecured claims for customer deposits Past-due property taxes court is forcing Blue Pencil Publishing to liquidate its assets and settle creditor claims. The court appointed the trustee with an estimated expense budget of $281,250. Subordinated debentures are subordinated on to the notes The bankruptcy courts and the company have discretion in how they elect to handle a failing firm. Just as the decision to reorganize or liquidate the industrial corporation, the bankruptcy courts would likely push for: Reorganization Liquidation Blue Pencil Publishing has been in financial distress for the past three years. The company's reorganization plans were rejected, and the bankruptcy court is forcing Blue Pencil Publishing to liquidate its assets and settle creditor claims. The court appointed the trustee with an estimated expense budget of $281,250. Subordinated debentures are subordinated only to the notes payable. The trustee has arranged the sale of Blue Pencil Publishing's assets and estimates to receive $2.50 million in proceeds from the liquidation. claimants, how much will common stockholders receive (if they receive anything at all) when Blue Pencil Publishing is liquidated? $625,000 $378,125$343,750 $718,750 19. Liquidations in bankruptcy When a business is worth more if its assets are sold than if it continues to operate, then the business is liquidated, and the proceeds from the sale are used to satisfy any outstanding debt. distribution of the debtor's assets among the creditors. The distribution of assets is governed by a certain priority of claims. Which of the following claimants has the highest priority according to Chapter 7? Federal taxes due Secured creditors Unsecured claims for customer deposits Past-due property taxes court is forcing Blue Pencil Publishing to liquidate its assets and settle creditor claims. The court appointed the trustee with an estimated expense budget of $281,250. Subordinated debentures are subordinated on to the notes The bankruptcy courts and the company have discretion in how they elect to handle a failing firm. Just as the decision to reorganize or liquidate the industrial corporation, the bankruptcy courts would likely push for: Reorganization Liquidation Blue Pencil Publishing has been in financial distress for the past three years. The company's reorganization plans were rejected, and the bankruptcy court is forcing Blue Pencil Publishing to liquidate its assets and settle creditor claims. The court appointed the trustee with an estimated expense budget of $281,250. Subordinated debentures are subordinated only to the notes payable. The trustee has arranged the sale of Blue Pencil Publishing's assets and estimates to receive $2.50 million in proceeds from the liquidation. claimants, how much will common stockholders receive (if they receive anything at all) when Blue Pencil Publishing is liquidated? $625,000 $378,125$343,750 $718,750