GAAP Accounting vs. Cash flow
Sorry about my last post..accidentally posted before finishing
To answer your question, I don't pay attention to the book equity or tangible asset value in this instance. There are so many accounting adjustments that have taken place based on historical events (many non-cash), that the book equity really isn't a relevant figure. Book value is very important in the financial sector and some others where you have assets that are traded or priced frequently in markets (ie. securities).
What matters in this case is the market value of the enterprise and the total fixed obligations (debt, accounts payable etc.) that must be satisfied prior to emergence from bankruptcy.
You can't determine the market value of the company entirely from the balance sheet. The only values that approximate market value are the working capital components (ie. current assets and liabilities). Even the PP&E reflects historical costs, which may deviate significantly from current market value (though if land is a big component, it's likely to have appreciated somewhat over time).
