Land value - $4mil?Property Plant & Equipment - depends if...

Land value - $4mil?

Property Plant & Equipment - depends if anyone actually wants to buy the product or not. With the current level of sales the plant is worth the value of the second hand materials, maybe $1mil. If they can demonstrate the stuff will sell, it depends what margin it can make. Early indications are that margins are about 10%, so 10% of maxiumum sales revenue of $12.6mil = $1.26mil gross profit, if someone is willing to get their investment back in 5 years they might pay $6mil for the plant

Inventory - same story.. either $0 or $1mil

Patents - same story.. either $0 or who knows??? It will depend on what margin can be made when there is a third party manufacturer making the stuff, and the true size of the market. Let's say they can get $3bil in sales. If they are getting 10% margin from their own plant they would probably only be able to get 5% after a third party manufacturer takes their cut. So 5% x $3bil = $150mil, lets say someone is prepared to pay 10 times those earnings = $1.5bil

Receivables - probably $0 since it looks like they are only getting paid if the distributor sells the stock. Best case if it does sell: $2.1mil

Cash - at face value of whatever is left when the plug is pulled, assume $0 because that's what caused the plug to be pulled.

SO worst case the assets would realise : land $4 mil plant $1mil = $5 mil

Less the $60mil to pay back to bondholders

Best case: land $4mil plant $6mil inventory $1mil receivables $2.1mil patents $1.5bil = $1.5013 bil

Less the $60mil to pay back to bondholders, or the bondholders converting their bonds and taking half of that $1.5bil