APA Co. filed a voluntary bankruptcy petition on August 15, 2008, and the statement eflects the following amounts: Estimated Вook current Value value Assets: Assets pledged with fully secured creditors Assets pledged with partially secured creditors.. Free assets... P 300,000 P370,000 180,000 420,000 P 900,000 120,000 320,000 P810,000 Liabilities: Liabilities with priority.... Fully secured creditors... Partially secured creditors.. Unsecured creditors. . 70,000 260,000 200,000 540,000 P1,070,000 P

APA Co. filed a voluntary bankruptcy petition on August 15, 2008, and the statement eflects the following amounts: Estimated Вook current Value value Assets: Assets pledged with fully secured creditors Assets pledged with partially secured creditors.. Free assets... P 300,000 P370,000 180,000 420,000 P 900,000 120,000 320,000 P810,000 Liabilities: Liabilities with priority.... Fully secured creditors... Partially secured creditors.. Unsecured creditors. . 70,000 260,000 200,000 540,000 P1,070,000 P

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 6P

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Kent Co. filed a voluntary bankruptcy petition on August 15, 2008, and the statement of affairs reflects the following amounts: Assets Book value Estimated Market value Pledged with fully secured creditors P300,000 P370,000 Pledged with partially secured creditors 180,000 120,000 Free Assets 420,000 320,000 Liabilities With priority 70,000 Fully secured 260,000 Partially secured 200,000 Unsecured 540,000 What amount of cash will be available for unsecured creditors?
ENRON Company filed a voluntary bankruptcy petition on July 1, 2011 and the statement of affairs reflects the following amounts: BOOK ESTIMATED CARRYING CURRENT VALUE P185, 000 60, 000 160. 000 P 405. 000 VALUE Assets pledge with fully secure creditors Assets pledge with partially secured creditors Free Assets P150, 000 90, 000 Liability with priority Fully secured creditors Partially secured creditors Unsecured creditors 210, 000 P 450. 000 Liabilities P35, 000 130, 000 90, 000 270, 000 P 525, 000 3. Determine the amount to be received by partially secured creditors. В. Р78, 000 A. P90, 000 C. P60, 000 D. P72, 000
WANTED Corporation filed bankruptcy on July 1, 2011 and some of the infomation below were taken from its statement of affairs. Estimated Realizable Value P300, 000 Book Value Assets: Assets pledge with fully secured creditors Assets pledge with partially secured creditors P250, 000 180, 000 120, 000 Liabilities: Fully secured creditors Partially secured creditors Unsecured creditors with priority P280, 000 200, 000 100, 000 Unsecured creditors 400, 000 6. Assumed that the assets are converted to cash at the estimated realizable values, what is the total estimated realizable value of the free assets if the partially secured creditors received P176, 000? A. P436, 000 в. Р316, 000 c. P336, 000 D. P416, 000
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Pitch Co. is undergoing liquidation. Information on Pitch Co. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 500,000 300,000 1,280,000 1,600,000 3,100,000 Free assets 2,880,000 LIABILITIES 400,000 480,000 Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 1,000,000 1,050,000 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 2. How much can the "partially secured creditors" expect to recover from their claims? а. 432,000 b. 445,600 c. 510,000 d. 548,000
ABC Co. is undergoing liquidation. Information on ABC Co.'s assets and liabilities is shown below: ASSETS Book value Realizable value Assets pledged to fully secured creditors Assets pledged to partially secured creditors 360,000 480,000 208,000 192,000 Free assets 600,000 576,000 1,168,000 1,248,000 LIABILITIES Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 288,000 288,000 384,000 240,000 432,000 384,000 240,000 432,000 1,344,000 1,344,000 How much can the partially secured creditors expect to recover from their claims?
On December 18, 2020, the statement of affairs of Facebook Company, which is in bankruptcy liquidation, included in the following:Assets pledges for fully secured liabilities P100,000Assets pledged for partially secured liabilities P40,000Free Assets P120,00Fully secured liabilities P80,000Partially Secured Liabilities P50,000Unsecured Liabilities with Priority P60,000Unsecured Liabilities without Priority P90,000Compute the estimated amount to be paid to:Fully Unsecured Partially UnsecuredSecured Liabilities Secured LiabilitiesLiabilities w/ Priority Liabilities W/out PriorityA . P80,000 P60,000 P50,000 P70,000B. P64,000 P60,000 P48,000 P88,000C. P80,000 P48,000 P60,000 P72,000D. P80,000 P60,000 P48,000 P72,000
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A company going through a Chapter 7 bankruptcy has the following account balances: How much will be paid to each of the following? Salaries payable Accounts payable Note payable Bonds payable
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors Fully secured liabilities Assets pledged with partially secured creditors Partially secured liabilities Assets not pledged Unsecured liabilities with priority Accounts payable (unsecured) $ 238,000 169,000 399,000 528,000 319,000 199,700 409,000 The company owes $22,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? The company owes $138,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $99,000. How much money can the bank expect to collect?
Mondesto Company has the following debts: Unsecured creditors Liabilities with priority Secured liabilities: Debt 1, $246,000; value of pledged asset Debt 2, $206,000; value of pledged asset Debt 3, $138,000; value of pledged asset $ 248,000 128,000 Selling value of free assets 198,000 118,000 176,000 The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $170,800. For how much do the free assets have to be sold so that the creditors associated with Debt 2 will receive exactly $170,800?
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