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Bu-Buy owes $7 million and has a market value of assets of $4.5 million. Bankruptcy administration costs of $650,000, unpaid wages of $450,000, and other
Bu-Buy owes $7 million and has a market value of assets of $4.5 million. Bankruptcy administration costs of $650,000, unpaid wages of $450,000, and other payments have resulted in $5.6 million in funds available for unsecured creditors, whose claims total $7 million. Because there are no subordinated claims, the settlement rate for the unsecured creditors is:
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