If the remainder of that $80 million or more in interest is paid, will the holders of SEBC common stock then receive a distribution?
First, it does not appear that the Chapter 7 bankruptcy estate has sufficient assets from which to pay the remainder of the interest to creditors and bondholders in full. In addition, at the time of the bankruptcy filing SEBC also had outstanding two series of preferred stock, each of which is similarly entitled to priority in payment or other distribution from the bankruptcy estate ahead of common stock. The remaining assets of SEBC consist of land holdings in Jacksonville, Florida. The value of such holdings is not certain as it is dependent upon the outcome of permit applications now pending before regulatory agencies and upon the results of sales efforts which will occur upon receipt of the permits. However, there is no prospect for the results of liquidation of the remaining land holdings to be sufficient to pay the remaining interest due to creditors or the amounts which would be due to satisfy preferred shareholders’ entitlements. Thus, there is little or no likelihood of value
Related Questions
- If the remainder of that $80 million or more in interest is paid, will the holders of SEBC common stock then receive a distribution?
- Does the Global Settlement provide for any distribution or payment to holders of the Debtor’s common stock?
- What if anything can be done to create value for the holders of SEBC common stock?
