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When the Master Printing Company filed for bankruptcy, it filed under CCAA. Key information is shown here: Assets Claims Mortgage bonds Senior debentures Junior debentures
When the Master Printing Company filed for bankruptcy, it filed under CCAA. Key information is shown here: Assets Claims Mortgage bonds Senior debentures Junior debentures $28,900 Book equity $20,900 11,400 9,400 -12,800 Going-concern value There are many possible reorganization plans, so we will make an assumption that the mortgage bonds are fully recognized as senior debentures, the senior debentures will receive junior debentures in the value of 60 cents on the dollar, and the junior debentures will receive any remaining value as equity. What will be the Reorganized claim amount for junior debentures under this plan
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