We provide the Liquidation Analysis as Financial Advisor for the Chapter 7 or Chapter 11 Bankruptcy proceedings.
The Debtors, with the assistance of their financial advisors, need to submit this Liquidation Analysis for the purpose of evaluating whether the Plan meets the so-called best interests test under section 1129(a)(7) of the Bankruptcy Code. The Liquidation Analysis can be prepared assuming the Debtors current Chapter 11 Cases convert to chapter 7 proceedings under the Bankruptcy Liquidation Date and their assets are liquidated.
A chapter 7 trustee ( Trustee ) would be appointed or elected to commence the liquidation of all of the Debtors assets. To maximize recovery, the liquidation is assumed to occur over a 12 to 18 month period (the Wind Down Period ). The Liquidation Analysis is based on unaudited book values as of certain date, and these values, in total, are assumed to be representative of the Debtors assets and liabilities as of the Liquidation Date. Values associated with Non- Debtor Affiliates are contained within such assets and liabilities. However, the Liquidation Analysis does not include recoveries resulting from any potential preference claims, fraudulent conveyance litigation, or other avoidance actions.
The Liquidation Analysis indicates the estimated values that would be obtained upon disposition of assets pursuant to a hypothetical chapter 7 liquidation, as an alternative to continued operation of the business as proposed under the Plan.
Accordingly, values discussed herein are different than amounts referred to in the Plan, which illustrates the value of the Debtors business as a going concern. The Liquidation Analysis refers to certain categories of Assets, liquidation costs, and Claims. The following notes describe significant assumptions associated within each category.
1. DIP Repayment if any.
Assets
2. Cash and ST Investments.
3. Restricted Cash.
4. Third-Party Accounts Receivable.
5. I/C Pre-Petition Receivables.
6. I/C Post-Petition Receivables.
7. Fuel Inventory.
8. Other Current Assets.
9. Flight Equipment.
10. Other Property and Equipment.
11. Intangible Assets.
12. Other Assets.
Administrative Claims
13. Trustee Fees.
14. Trustee s Counsel and Related.
15. Wind-Down and Professional Fees.
Claims
16. Secured Claims.
17. Total Administrative and Priority Claims.
18. Unsecured Claims.
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