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ABC Widgets Inc. has the following assets and liabilities. The Company declares bankruptcy and it is revealed during the court proceedings that the senior term
ABC Widgets Inc. has the following assets and liabilities. The Company declares bankruptcy and it is revealed during the court proceedings that the senior term loan never perfected their security interest and no other intercreditor arrangements exist between the lenders or equity holders. Calculate the total recovery (in dollars) in a liquidation of the assets of the 3rd lien term debt, assuming that the A/R has an 80% recovery rate, and the fixed assets have a 75% recovery rate: $1250 $250 $500 $1750
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