axlsusie
I don't understand the super LLC situation well enough but it may well be that CER needs to leave its equity in place to permit any recapitalisation of LLC. But that is OK provided there is overall equity in LLC and it is a going concern - in that case if there was no longer a liability to support the CNP equity the CER impairment might be reversed.
The fly in the ointment is the CNP negative equity. It may be that the capital transaction might include transferring CER's LLC equity to CNP - then CER would have a CNP loan or investment in place of some or all of its LLC investment. The question then is how secure the CNP investment is - at what point could CER write back what would then be an impairment of the CNP balance - the answer would depend upon the health of CNP.
All this is just speculation as I don't know the detailed agreements underlying either CER or CNP's investment and obligations in LLC. However, it makes for interesting speculation!
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