Current assets 1,875,000 account payable 375,000, fixed assets 1,875,000 notes p

Question

Current assets 1,875,000 account payable 375,000, fixed assets 1,875,000 notes payable 750,000, subordinated debentures 750,000total debt 1,875,000 common equity 1,875,000 total liabilities and assets 3,750,00. Trustee fee total $211,750 and no accrued taxes or wages or unfunded pension liabilities. The debentures are subordinated only to the notes payable. If firm goes bankrupt or liquidated how much would each class of investor receive from 3 million sale of assets? From sales? First mortgage, paid from sale? Fees and expenses of administration of bankruptcy? Wages due workers within three months? Taxes? Unfunded pension plan? Available and distribution to general creditors? to cr Current assets 1,875,000 account payable 375,000, fixed assets 1,875,000 notes payable 750,000, subordinated debentures 750,000total debt 1,875,000 common equity 1,875,000 total liabilities and assets 3,750,00. Trustee fee total $211,750 and no accrued taxes or wages or unfunded pension liabilities. The debentures are subordinated only to the notes payable. If firm goes bankrupt or liquidated how much would each class of investor receive from 3 million sale of assets? From sales? First mortgage, paid from sale? Fees and expenses of administration of bankruptcy? Wages due workers within three months? Taxes? Unfunded pension plan? Available and distribution to general creditors? to cr

Explanation / Answer

Hello Pal,

First of all a very nice as well as intersting question from your side.

So now straight to the question, as asked above with all the information available from your side and from mine, the answer is as under:

After calculating the above mentioned information, we can conclude that there will be an equal distribution of funds to the investors, in accordance with the way they have invested in the company, respectively. Likewise all the other parties involved will also get their due out of the liquidation of assets of the company. But, this is to be taken into consideration that no one, of parties concerned will get full amount of what he/she has invested in the company.

That is all I can say from the above given information by you, hope have solved your problem to some extent.

Regards.

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