this is capital reconstruction and designing a scheme

Question 5 Seyram Ltd has been trading profitably for several years but for the past four years its operations have resulted in losses. The board of directors has decided to reconstruct the company. The balance sheet or Seyrum Ltd as at 3014 September 2018 was as follows: GH GHE Long term Assets Freehold Land and Buildings 3.788 Plant and Equipment 7,020 Furniture and Fittings 3,080 Investment 2,300 Deferred Development Expenditure 7.050 Patent Rights 4,200 27,438 Current Assets Inventory 3,510 Trade Receivables 1,600 Cash in hand 428 5.530 Current Liabilities Bank Loan 5.360 Trade payables 4.650 Sundry payables 1.060 11.070 Net current liabilities (5532) 22% Debentures (7,875) 14,031 Financed by: Stated capital 17,625 Capital Surplus 2,250 Income surplus (5.844) 14,031 Additional information 1. Seyram Lid' stated capital consist of GH Ordinary shares 13,500 20% cumulative preference shares 4.125 2. No dividend was declared on the preference shares for the year ended 30th September 2018. 3. The following long term assets have net realizable values as indicated below. Freehold land and building GH4,005 Plant and Equipment GH3,750 Furniture and Fixtures GH2,800 6 The investment Seyran lid is 55% holding in Isaac Ltd. An offer of Che 350 has been made for Seyram Lid's holding and has been accepted by the directors. I 5. Following further feasibility study carried out on the project which gave rise to the deferred development expenditure, the directors have decided to discontinue the project. The project is not patented. 6. The directors have decided to sell the patent rights for a net realizable value of GH1.800. 7. Stock was to be written down by GH2,232 8. The 22% debentures were secured on the freehold land and buildings. 9. The bank has a fixed and floating charges over the assets in respect of the loan. 10. It is considered that a proposed reconstruction of the company should result in net profit after tax of GH1,500 in the year ending 30th September 2019 and GH1,800 or more in each of the years thereafter. 11. The company will require a ratio of receivables and cash to current liabilities of 0.8:1 in future to trade satisfactorily. Required a. As the Director of Finance of Seyram Ltd, formulate a scheme of reconstruction for consideration by the board of directors of the company and prepare a summarized balance sheet after the reconstruction has been affected. b. Explain the relevance /important of the proposed scheme to any (2) of the following stakeholders i. The ordinary stakeholders ii. The preference shareholders iii. The debenture holder iv. The trade payable