What is the value of the restructured firm under Butters' plan and what capital structure would you recommend? What will each claimant end up owning?
2. How would your valuation change if you were asked how much a buyer should pay to buy the assets from Navigator before Bankruptcy.
3. How would your valuation change if you were asked how much a buyer should pay to merge with Navigator in an A reorganization prior to bankruptcy?
4.Which claimants (for example first or second priority note holders) should vote for Butters' plan? (assume long term cashflows grow at 2%, and at the end of 2030, ships are scrapped with no residual value).
- Would you have bought the first and second priority notes when issued in 1997? Analyze Navigator's financial policies.