ACP 6 - CORPO LIQ & REORG

Company B has been forced into bankruptcy and liquidated. Unsecured claims will be paid at the rate of Php 0.70 on the peso. Letran Ent holds a non-interest bearing note receivable from Company B in the amount of Php 75,000 collaterized by machinery with a liquidation value of Php 12,500. The total amount to be realized by Letran on this note receivable is:

(a)  

Asia Pacific Inc., was undergoing liquidation. The total cash value of Asia Pacific's bankruptcy estate after the sale of all assets and payment of administration expenses is Php 375,000.Asia Pacific has the following creditors:

1. Builders Bank is owed Php 227,500 on a mortgage loan secured by Asia Pacific's real property. The property was valued at and sold in bankruptcy, for Php 180,000.00; 2. The BIR has Php 30,000 for unpaid corporate income tax; 3. Global Office Supplies has an unsecured claim of Php 7,500 that was timely filed; 4. Starex Electric Co has an unsecured claim of Php 25,000 that was timely filed; 5. Bright Corp is owed Php 125,000 in a loan contract secured by Asia Pacific's note receivable which realized Php 150,000. Calculate the total amount recoverable by partially secured creditors:

(a)  

Asia Pacific Inc., was undergoing liquidation. The total cash value of Asia Pacific's bankruptcy estate after the sale of all assets and payment of administration expenses is Php 375,000.Asia Pacific has the following creditors:

1. Builders Bank is owed Php 227,500 on a mortgage loan secured by Asia Pacific's real property. The property was valued at and sold in bankruptcy, for Php 180,000.00; 2. The BIR has Php 30,000 for unpaid corporate income tax; 3. Global Office Supplies has an unsecured claim of Php 7,500 that was timely filed; 4. Starex Electric Co has an unsecured claim of Php 25,000 that was timely filed; 5. Bright Corp is owed Php 125,000 in a loan contract secured by Asia Pacific's note receivable which realized Php 150,000. Calculate the total amount recoverable by unsecured creditors with priority:

(a)  

Asia Pacific Inc., was undergoing liquidation. The total cash value of Asia Pacific's bankruptcy estate after the sale of all assets and payment of administration expenses is Php 375,000.Asia Pacific has the following creditors:

1. Builders Bank is owed Php 227,500 on a mortgage loan secured by Asia Pacific's real property. The property was valued at and sold in bankruptcy, for Php 180,000.00; 2. The BIR has Php 30,000 for unpaid corporate income tax; 3. Global Office Supplies has an unsecured claim of Php 7,500 that was timely filed; 4. Starex Electric Co has an unsecured claim of Php 25,000 that was timely filed; 5. Bright Corp is owed Php 125,000 in a loan contract secured by Asia Pacific's note receivable which realized Php 150,000. Calculate the total amount recoverable by fully secured creditors:

(a)  

Asia Pacific Inc., was undergoing liquidation. The total cash value of Asia Pacific's bankruptcy estate after the sale of all assets and payment of administration expenses is Php 375,000.Asia Pacific has the following creditors:

1. Builders Bank is owed Php 227,500 on a mortgage loan secured by Asia Pacific's real property. The property was valued at and sold in bankruptcy, for Php 180,000.00; 2. The BIR has Php 30,000 for unpaid corporate income tax; 3. Global Office Supplies has an unsecured claim of Php 7,500 that was timely filed; 4. Starex Electric Co has an unsecured claim of Php 25,000 that was timely filed; 5. Bright Corp is owed Php 125,000 in a loan contract secured by Asia Pacific's note receivable which realized Php 150,000. Calculate the total amount recoverable by unsecured creditors without priority:

(a)  

The following were taken from the statement of affairs of Harrassed Company:

Assets pledged with fully secured creditors - Php 71,000; Assets pleaded with partially secured creditors - Php 12,500.00; Free Assets - Php 11,000.00; Unsecured creditors with priority - Php 3,000; Fully secured creditors - Php 69,000.00; Partially secured creditors Php 20,000; Unsecured creditors without priority - Php 18,000. The estimated deficiency to unsecured creditors is:

(a)  

The estimated recovery of partially secured creditors is equal to

• the realizable value of the assets pledged plus the excess amount multiplied by the estimated recovery percentage

• the realizable value of the assets pledged minus the ecess amount multiplied by the estimated recovery percentage

• their claims multiple by the estimated recovery percentage

Liabilities in the statement of affairs are classified into

• unsecured liabilities with priority

• fully secured creditors

• partially secured creditors

• unsecured liabilities without priority

• all of these

Statement 1: Creditors having security interests collateralized by specific assets of a debtor in bankruptcy liquidation are entitled to obtain satisfaction of their claims from the free assets of the debtor's estate

Statement 2: Unsecured creditors whose claims are to be paid in full from the assets of a debtor in bankruptcy liquidation before any cash is paid to other unsecured creditors are classified as unsecured creditors having preference.

• both statements are true

• both statements are false

• Only statement 1 is true

• Only statement 2 is true

Statement 1: Owner's equity amounts are not displayed in a statement of affairs (financial statement).

Statement 2: Insolvency is a financial status in which the aggregate current fair value of the asset of a business enterprise is not sufficient to pay the enterprise's liabilities.

• both statements are true

• both statements are false

• Only statement 1 is true

• Only statement 2 is true