Sarah G. Company is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Sarah G’s assets and liabilities: · The total assets which are not used as security for any liability amounted to P5M while the total unsecured liabilities amounted to P20M. · The total assets which are used as collateral or security for corporate obligations amounted to P10M. ¾ of these assets secure a mortgage payable with book value of P2M including interest while the remainder secure a note payable with the book value of P3.5M including interest. · Salaries payable amounted to P2M while taxes due government amounted to P1M. What is the amount received by partially secured creditors?

Sarah G. Company is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Sarah G’s assets and liabilities: · The total assets which are not used as security for any liability amounted to P5M while the total unsecured liabilities amounted to P20M. · The total assets which are used as collateral or security for corporate obligations amounted to P10M. ¾ of these assets secure a mortgage payable with book value of P2M including interest while the remainder secure a note payable with the book value of P3.5M including interest. · Salaries payable amounted to P2M while taxes due government amounted to P1M. What is the amount received by partially secured creditors?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 6P

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Jason Company is under court-supervised liquidation due to its insolvency. The court appointed liquidator has provided the following data after conducting an inventory of Jason's assets and liabilities: • The total assets which are not used as security for any liability amounted to P5M (before deducting with priority) while the total unsecured liabilities without priority amounted to P20M. • The total assets which are used as collateral or security for corporate obligations amounted to P10M. ¾ of these assets secure a mortgage payable with book value of P2M including interest while the remainder secure a note payable with the book value of P3.5M including interest. • Salaries payable amounted to P2M while taxes due government amounted to P1M. What is the estimated recovery percentage of unsecured creditors without priority?Required to answer. Single line text.
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