If fully written off, it is still worth $3MM+ of tax savings ($8.7MM of new NOLs). So worst case scenario IVFH got $3MM+$4.6MM = $7.6MM for FD, not $10...
Agree there is little chance we get much in term of cash. It is probably going to be converted into equity as part of a larger restructuring of FD. In any case writing it down now makes sense - as it can be accounted as NOLs vs capital losses post restructuring.
All in we would all have preferred a different outcome for FD, but quite frankly once they decided to stop investing in it, it is hard to imagine getting much better. There was no way they would have ever gotten cash for it, and a spin-off would had carried a good amount of legal risk in case of a bankruptcy.