Sentences with phrase «liquidation scenario»
A "liquidation scenario" refers to a situation where a company or business is forced to sell off its assets in order to pay off its debts or close down. It usually happens when a company is facing financial problems and cannot continue operating. Full definition
If a fund employed minimal leverage, a fund implementing these strategies would likely survive a broker liquidation scenario.
greenbackd.com
I calculated that HAWK was worth around $ 154M in the more dour liquidation scenario, assuming that the rig value was $ 230M.
While it's unknown why investors decided to go the convertible debt route, in a liquidation scenario, debt holders would be paid out before equity holders.
Additionally, the convertible security allows each Avigen stockholder the choice of receiving cash in an amount not presently available to them, other than in a liquidation scenario, or participating in what we believe will be growth in value of the combined entity.
On the other hand under a liquidation scenario wouldn't you take current assets + rig value less total liabilities.
«You have to understand where you sit in priority in a liquidation scenario.»
You could even argue that in a liquidation scenario the deferred income tax liability would disappear since the company would record massive losses if all long term assets would be valued at zero (which you do when you look at just NCAV).
The thing to remember about management's valuation in a liquidation scenario, however, is that it is almost always CONSERVATIVE.
Unfortunately in a liquidation scenario it doesn't appear that RadioShack would realize book value because 1) much of the book value is comprised of inventory which, in my humble opinion, would be worth far less than 50 cents on the dollar in a liquidation scenario and 2) the costs of winding down the myriad leases are not fully reflected in the financials and they would substantially eat into liquidation value.
In a liquidation scenario (which I think we are closing in on) I would make the following simplification: assume PP&E ($ 21 million) is liquidated at 50 cents on the dollar and the resulting funds used to pay wind down costs.
That seems like a pretty good proposition to me since projections made under a liquidation scenario are generally very conservative.
As Benefits Canada explains, the court held that the federal statute took precedence over the provincial statute, ruling that «the deemed trust that gives priority to pension claims under Newfoundland and Labrador's Pension Benefits Act wasn't effective in a liquidation scenario in a [CCAA] proceeding.»