Question
Companies Creditors arrangement act The Southeast Asia Corporation (SAC) is to be liquidated. The market value of its assets is $20 million. Bonds with a
Companies Creditors arrangement act
The Southeast Asia Corporation (SAC) is to be liquidated. The market value of its assets is $20 million. Bonds with a face value of $10.7 million are unsecured. SAC has no subordinated debentures outstanding; shareholders equity has a market value of $4 million; $840,000 is used to cover administrative costs and other claims (including unpaid wages, pension benefits, legal fees, and taxes).
The company has a liquidating value of $17 million. Of this amount, $13 million represents the proceeds from the sale of their flagship Indonesian resort.
As a trustee in bankruptcy, you wish to follow the bankruptcy law strictly. What is your proposed distribution? (Enter your answers in whole dollars not in millions. Do not round intermediate calculations. Omit $ sign in your response.)
| Proposed Distribution | |
| Administrative fees & other claims | $ ? |
| Bond Holders | $ ? |
| Equity Holders | $ ? |
this is the Full question and all the information are above
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
