Before mortgage bankers can fully grasp liquidation value
, it's important to have a clear understanding of market value.
Another problem is the actual calculation of the liquidation value
for purposes of this safe harbor.
The concepts of going concern value and liquidation value
also can lead to interesting predicaments.
2) By requiring liquidation value
, it appears that lack of marketability and minority interest discounts may not apply.
Figure 2 illustrates holding value and liquidation value
using data from Table 1.
We dropped 22 firms because they did not provide sufficient information to determine liquidation value
108-8(b)(2), partnerships satisfying four safe-harbor requirements are allowed to use liquidation value
to determine the amount of DOI income in a partnership debt-for-equity transfer.
In estimating Sanmina's liquidation value
under a distressed scenario, Fitch applied advanced rates of 80%, 20%, and 10% to Sanmina's current balance of accounts receivable, inventory, and property, plant and equipment, respectively.
According to the Regulations, a Resolution Plan needs to identify specific sources of funds to be used for paying the liquidation value
due to dissenting creditors.
The liquidation value
is the amount that would be paid to the holder if the partnership sold its assets for cash and liquidated.
The board also declared a cash dividend on its 8% Series C cumulative redeemable perpetual preferred stock ($25 liquidation value
per depositary share, each representing 1/100th of a share of preferred stock) equal to $0.
One report gave the liquidation value
of the assets in case the banks had to sell them to a third party.