Distributed strictly according to precedence

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Reference no: EM131303365

Elixir Corporation has just filed for bankruptcy. Elixir is a holding company whose assets consist of real estate worth $160 million and 100% of the equity of its two operating subsidiaries. It is financed partly by equity and partly by an issue of $480 million of senior collateral trust bonds that are just about to mature. Subsidiary A has issued directly $400 million of debentures and $23 million of preferred stock. Subsidiary B has issued $220 million of senior debentures and $100 million of subordinated debentures. A’s assets have a market value of $540 million and B’s have a value of $268 million. How much will each security holder receive if the assets are sold and distributed strictly according to precedence? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers in millions.)

Payoff ($)

Debenture

Senior Debenture

Subordinated Debenture

Trust Bond

Preferred Stock

Reference no: EM131303365

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