Winter Holidays Inc. The Company was started in 1970 by Ms. Kris Kringle. The Company makes fake Christmas trees and has a total of 5 manufacturing plants in NY, NJ and Delaware. In the fall of 2019 one of their suppliers had a fire and has not been able to provide the plastic used to make the wreaths. Winter Holidays Inc. had enough in inventory to get through the 2019 holiday season, but not enough to get through 2020's holiday season. They had to go out and source a new supplier, paying 15% more than they paid previously due to the pandemic. Winter Holidays Inc. was able to raise prices by 3% and cut expenses by 2%, so their gross profit is only down 10%. In August 2020 Winter Holidays Inc. lost a big contract that makes up 15% of their revenue. They have yet to replace the contract. They need to file bankruptcy. $450mm still outstanding due May 2023 6% coupon - 10 Sr. Sec Bank Debt holders Subordinated Bonds $200mm due May 2026 9% coupon - 7 holders Equity 1,000,000 shares outstanding trading around 50 cents a share The bank debt doesn't amortize. Use the following information for the questions below (until extra credit). EXIBIT 1 Winter Holidays Inc. In MM's FYE 12/31 FYE FYE FYE 12/31/20 12/31/18 12/31/19 Revenue 500 475 427.5 Net Income 100 85.5 68.4 Depreciation and Amortization 55 54 53 Interest Expense 46 44.4 42 Taxes 35 29.9 13.7 Current Assets 20 22 19 Current Liabilities 15 17 18 Capex 15 14 13 Total Debt Outstanding 650 650 650 Question 27 2 pts Who can file the company? 2 creditors only debtor only debtor or 3 creditors debtor or 2 creditors Question 28 2 pts The bankruptcy judge in NY is known to allow companies to pay critical vendors. The company would like to file in NY, can they? no because they have a manufacturing plant there no because they lost a big contract O yes because they lost a big contract Yes because they have a manufacturing plant there Winter Holidays Inc. The Company was started in 1970 by Ms. Kris Kringle. The Company makes fake Christmas trees and has a total of 5 manufacturing plants in NY, NJ and Delaware. In the fall of 2019 one of their suppliers had a fire and has not been able to provide the plastic used to make the wreaths. Winter Holidays Inc. had enough in inventory to get through the 2019 holiday season, but not enough to get through 2020's holiday season. They had to go out and source a new supplier, paying 15% more than they paid previously due to the pandemic. Winter Holidays Inc. was able to raise prices by 3% and cut expenses by 2%, so their gross profit is only down 10%. In August 2020 Winter Holidays Inc. lost a big contract that makes up 15% of their revenue. They have yet to replace the contract. They need to file bankruptcy. $450mm still outstanding due May 2023 6% coupon - 10 Sr. Sec Bank Debt holders Subordinated Bonds $200mm due May 2026 9% coupon - 7 holders Equity 1,000,000 shares outstanding trading around 50 cents a share The bank debt doesn't amortize. Use the following information for the questions below (until extra credit). EXIBIT 1 Winter Holidays Inc. In MM's FYE 12/31 FYE FYE FYE 12/31/20 12/31/18 12/31/19 Revenue 500 475 427.5 Net Income 100 85.5 68.4 Depreciation and Amortization 55 54 53 Interest Expense 46 44.4 42 Taxes 35 29.9 13.7 Current Assets 20 22 19 Current Liabilities 15 17 18 Capex 15 14 13 Total Debt Outstanding 650 650 650 Question 27 2 pts Who can file the company? 2 creditors only debtor only debtor or 3 creditors debtor or 2 creditors Question 28 2 pts The bankruptcy judge in NY is known to allow companies to pay critical vendors. The company would like to file in NY, can they? no because they have a manufacturing plant there no because they lost a big contract O yes because they lost a big contract Yes because they have a manufacturing plant there