Green Bay Press-Gazette - Plan dissolves bankrupt Hougard

"Posted July 31, 2004
Construction company's debts top $3.5 million
By Andy Nelesen and Karen Rauen
anelesen@greenbaypressgazette.com krauen@greenbaypressgazette.com
A federal bankruptcy court this week approved the liquidation plan that will dissolve the construction company that was the contractor for the original Lambeau Field and dozens of other buildings in Northeastern Wisconsin.
Geo. M. Hougard & Sons Inc. filed Chapter 11 bankruptcy in July 2003, blaming poor economic conditions in the wake of the Sept. 11, 2001, terrorist attacks. The 106-year-old construction company, involved through the years in construction of the Neville Public Museum, the Brown County Central Library, the KI Convention Center and Green Bay Preble and Southwest high schools among others, closed its doors in May 2003 and laid off 80 employees, but it re-opened in July to finish some projects."
_______________________________
"According to the bankruptcy documents, the firm owes $288,186 in secured and administrative debt and $3.4 million in unsecured debt.

Secured creditors get first dibs on the proceeds of the company’s liquidation. Unsecured creditors divvy up what’s left."
_______________________________
"According to documents filed in federal court, the company has assets of approximately $1.5 million, including $640,000 in cash from the sale of assets in June 2004. The company’s accounts receivable — part of its total assets — are estimated at $1.36 million, but because of claims that project owners are expected to file against the company for uncompleted work, Hougard estimates the collectible amount at $600,000."
_______________________________
Let's see - hmmm? $1.5 million in assets of which $1.3 million is accounts receivable (which only $600,000 is estimated to be collectable)brings assets to somewhere around $800,000?

But wait, it states they have $600,000 in cash and $600,000 in collectable accounts receivable - that way brings total to $1.2 million. I wonder what it really is. OK, let's say they have between $800,000 and $1.2 milion in assets.

The first $288,186 goes to secured and administrative debt?
And, there is "$3.4 million in unsecured debt"?
And, "Unsecured creditors divvy up what’s left."

IF they collect $600,000 of the $1.3 million in accounts receivable and IF there are no more "administrative" costs to "divvy" it up, unsecured creditors will get between 15 and 27 cents on the dollar? Is that correct?

Business Credit Insurance