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.
