The MT Co. is to be liquidated. The book value of its assets is $52 billion. Bonds with a face value of $28 billion are secured by a mortgage on the company's Vancouver and New York buildings. MT has subordinated debentures outstanding in the amount of $35 billion; shareholders' equity has a book value of $9 billion; $4.4 billion 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 $30 billion. Of this amount, $14 billion represents the proceeds from the sale of the Toronto and New York buildings.

Suppose the company prefers to reorganize rather than liquidate, the going-concern value is of $37 billion.

Question: What is the recommended proposal and how is that proposal different if the company liquidates?