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Re: beachboy3 post# 473

Thursday, 06/18/2015 8:38:01 AM

Thursday, June 18, 2015 8:38:01 AM

Post# of 509
Here is the summary page from the schedules.

In summary:
Assets - $21 million

Secured liabilities - $181 million
Unsecured liabilities - $12 million.
Total liabilities - $193 million

The way I did the calculation is as follows:

1: There is not enough to pay off the secured liabilities, so the unsecured (and common stock) end up with zero. If the secured can't be paid in full, unsecured and common get zero.

2: At best, there are $21 million in assets to pay off the $181 million in secured liabilities (mostly the $175 million bond offering); so the expected payout on the secured is 21/181 or 11% at best. While some of the secured liabilities may get a better payout because they are specifically secured by some asset that does cover their amount, the bonds can't do any better than 21/181, and that is providing what little there is left in assets does not get eaten up by legal fees or they are left with less because some of the other secured takes more than 'its share' of the assets.

3: The last trade on the bonds was in the 30s, but with a best scenario payout of 11%, anyone buying would lose at last 2/3rds of their investment. If anyone owns the bonds and can still sell for 30, they should take it.

Louis J. Desy Jr.

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