Exhibit 99.3
LIQUIDATION ANALYSIS
The JCEI’s liquidation analysis in this Appendix B is based upon a number of significant assumptions that are described. The liquidation analysis does not purport to be a valuation of the JCEI’s assets and is not necessarily indicative of the values that may be realized in an actual liquidation.
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Net Recoverable Assets |
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Cash and Cash Equivalents (1) |
| $ | 29,519,000 |
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Accounts Receivable (2) |
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| 37,741,429 |
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Prepaid Expenses (3) |
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| 1,044,375 |
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Carrier Revenue Equipment (4) |
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| 61,671,485 |
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Furniture, fixtures, equipment and service vehicles |
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| 5,214,477 |
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Real Property and CIP (5) |
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| 10,575,014 |
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Total Net Recoverable Assets |
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| 145,765,780 |
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Less: Preliminary Estimated Prepaid Expenses Subject to Existing JCHC Notes First Priority Lien (7) |
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| 1,044,375 |
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Less: FF&E and service vehicles Subject to Existing JCHC Notes First Priority Lien (7) |
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| 5,214,477 |
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Less: Real Property and CIP |
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| 10,575,014 |
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Net Available to Senior Secured Creditors |
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| 128,931,914 |
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Less: Amounts Due Senior Secured Creditors |
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Revolving Credit Facility |
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| 69,764,131 |
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MSD Term Loan due 2018 (Includes Make Whole) |
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| 67,187,500 |
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MSD Term Loan Deficiency Claim |
| $ | (8,019,717) |
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Solus Term Loan Deficiency Claim (Includes Make Whole) (6) |
| $ | (44,075,000) |
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Collateral Available for JCHC Note Holders (7) |
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Preliminary Estimated Prepaid Expenses Subject to Existing JCHC Notes First Priority Lien (7) |
| $ | 1,044,375 |
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FF&E and service vehicles Subject to Existing JCHC Notes First Priority Lien (7) |
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| 5,214,477 |
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Total Preliminary Estimated Collateral To Existing JCHC Note Holders |
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| 6,258,852 |
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Less: Existing JCHC Notes Including Accrued Interest |
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| 389,453,125 |
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JCHC Note Holders Deficiency Claim |
| $ | (383,194,273) |
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Real Property and CIP |
| $ | 10,575,014 |
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Less: Mortgage |
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| 1,735,000 |
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Net Collateral Available to Unsecured Creditors (8) |
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| 8,840,014 |
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Less: Preliminary Estimated Wind down / Asset Marshal Costs (9) |
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| 3,000,000 |
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Less: Preliminary Professional / Trustee Fees (9) |
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| 2,237,500 |
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Net Proceeds Available to Unsecured Creditors |
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| 3,602,514 |
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Less: Preliminary Unsecured Creditors Claims |
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| 161,381,588 |
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Less: Preliminary Pension Withdraw Liabilities |
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| 1,179,867,559 |
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Less: MSD Term Loan Deficiency Claim |
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| 8,019,717 |
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Less: Solus Term Loan Deficiency Claim |
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| 44,075,000 |
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Less: JCHC Note Holders Deficiency Claim |
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| 383,194,273 |
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Amount Available (Deficit) For Equity |
| $ | (1,772,935,623) |
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Notes: |
(1) Represents Cash and cash equivalents as of April 30, 2017. |
(2) Represents 85% of the accounts receivable created in the ordinary course business as of April 30, 2017, net of accounts receivable greater than 90 days past due. No assumption made for Customer Set-off for damage claims. |
(3) Represents prepaid insurance premiums for the last three months 2017 that would be recoverable once operations cease as well as inventory parts and tires as of April 30, 2017 discounted by 90% for a forced liquidation. |
(4) Represents net forced liquidation value of the carrier revenue equipment as of March 31, 2017 adjusted for one month of depreciation. |
(5) Represents land, buildings, and construction in progress as of April 30, 2017 net of 25% discount for FLV. |
(6) Solus Term Note Deficiency Claim Equal to Value of Notes Including Make whole |
(7) Existing JCHC Notes First Priority Lien Collateral |
(8) Net Real Property and CIP Unencumbered (No known Liens Recorded) |
(9) For Presentation Purposes Wind Down and Asset Marshal costs and Professional and Trustee Fees are assumed funded from net proceeds of unencumbered assets. Under 11 U.S.C s 506c, it is possible these costs could be surcharged against first lien collateral. |
General Note: JCEI does not affirm any lien rights to any collateral |