Question

Ataway Company has severe financial difficulties and is considering filing a bankruptcy petition. At this time, it has the following assets and liabilities. The assets are stated at net realizable value. Assets (pledged against debts of $86,000) Assets (pledged against debts of $162,000) Other assets Liabilities with priority Other unsecured creditors $ 148,000 66,000 96,000 64,400 216,000 In a liquidation, how much money would be paid on the partially secured debt? Payment on partially secured debt

Answer 1

Collection from the (net of debt seimbursement secured) pont paid (oeht) Amount Collected Allset [pledged against 148000 - 86000 nebt of $ 86000 86000__ * $62.000 158.000. Asset fpledged apainst debt -of 1820003 6600** Sumseemed _.162.000 66000 => 96.000 other that 96.000 Total Aucts collected, out of this, liabilities with priority will be paid in cash left :158000 – 6H, Hol => 98600_ [ Total im scared liabilitics beft d_216000 + 96000 Cumeaured portion) _' 819.000 Remaining Cash to be distributed in ratio of Amount due Amount paid to partially puledge alebf : cash Hefte partially pledge abbels - Total unsecured liability zy_13.600 x 96000 > 18800 - - Total Amount paid to partially accred clebt 66000 from pledge aset + 28800 (distributed from unsecured liability) $ $ 968 00 21 2000