5. Where can they file? 6. Where they file is called? 7. What is in the disclosure statement? 8. How many days does management have to put forth a plan of reorganization? The subordinated bonds are the only impaired class. 9. Which class(es) vote on the plan of Reorganization? 10. What is the minimum number of holders in number and dollar amount that are required to vote yes for the plan to be confirmed? 11. What are the 4 test required for the plan to be confirmed? Cool Me Air Conditioning Inc. The Company was started in 1990 by George Hots. The Company has a total of 10 manufacturing plants in NY, NJ and Delaware. In 2017 one of their suppliers had a fire and has not been able to provide a cooling coil the company uses in all of their air conditioners. Cool Me Air Conditioning Inc. had enough in inventory to last 5 months. They had to go out and source a new supplier, paying 10% more than they paid previously. As a result, Cool Me Air Conditioning Inc.'s gross profit is down 10% since they were not able to pass the increase to their customers. In January 2018 Cool Me Air Conditioning Inc. lost a big contract that makes up 15% of their revenue. They have yet to replace the contract. Sr. Sec Bank Debt $400mm still outstanding due May 2025 4% coupon - 10 holders Subordinated Bonds $200mm due May 2030 7% coupon - 7 holders Equity 1,000,000 shares outstanding trading around 50 cents a share The bank debt amortizes $10mm a quarter. Balance paid at maturity. 1. Cool Me Air Conditioning is going to have a hard time making their debt amortization payments in 2019. They approach their bank lenders. This type of restructuring is called? 2. All but 3 bank lenders agree. The ones that don't agree are called what? 3. The 3 that don't agree hold a total of $300mm in bank debt. Will the company agree to the deal negotiated by the other 7 holders? Why or why not? Cool Me Air Conditioning Inc. still has not been able to replace the contract they. lost. They need to file bankruptcy. 4. Who can file the company? 5. Where can they file? 6. Where they file is called? 7. What is in the disclosure statement? 8. How many days does management have to put forth a plan of reorganization? The subordinated bonds are the only impaired class. 9. Which class(es) vote on the plan of Reorganization? 10. What is the minimum number of holders in number and dollar amount that are required to vote yes for the plan to be confirmed? 11. What are the 4 test required for the plan to be confirmed? Cool Me Air Conditioning Inc. The Company was started in 1990 by George Hots. The Company has a total of 10 manufacturing plants in NY, NJ and Delaware. In 2017 one of their suppliers had a fire and has not been able to provide a cooling coil the company uses in all of their air conditioners. Cool Me Air Conditioning Inc. had enough in inventory to last 5 months. They had to go out and source a new supplier, paying 10% more than they paid previously. As a result, Cool Me Air Conditioning Inc.'s gross profit is down 10% since they were not able to pass the increase to their customers. In January 2018 Cool Me Air Conditioning Inc. lost a big contract that makes up 15% of their revenue. They have yet to replace the contract. Sr. Sec Bank Debt $400mm still outstanding due May 2025 4% coupon - 10 holders Subordinated Bonds $200mm due May 2030 7% coupon - 7 holders Equity 1,000,000 shares outstanding trading around 50 cents a share The bank debt amortizes $10mm a quarter. Balance paid at maturity. 1. Cool Me Air Conditioning is going to have a hard time making their debt amortization payments in 2019. They approach their bank lenders. This type of restructuring is called? 2. All but 3 bank lenders agree. The ones that don't agree are called what? 3. The 3 that don't agree hold a total of $300mm in bank debt. Will the company agree to the deal negotiated by the other 7 holders? Why or why not? Cool Me Air Conditioning Inc. still has not been able to replace the contract they. lost. They need to file bankruptcy. 4. Who can file the company