A firm has a value of $72 million if it is not liquidated and a value of $56 million if it is liquidated.The firm has $48 million in senior debt outstanding and $40 million in junior debt outstanding.The firm proposes the following restructuring:

senior debtholders exchange their debt for 70% of the firm's equity

junior debtholders exchange their debt for 10% of the firm's equity

equityholders keep 20% of the reorganized firm's equity

Which of the security holders prefer this reorganization plan to what they would get in liquidation assuming that the Absolute Priority Rules (APR) would be followed in liquidation?

(a)equityholders

(b)senior debtholders

(c)junior debtholders