You own $25,000 in subordinated debt of Local Crossings, Inc. which declared bankruptcy on May 15, 2018. Local Crossings' balance sheet at the time of the bankruptcy filing is listed below.

The accrued wages were earned within the last 90 days prior to filing for bankruptcy. The unpaid employee benefits were due in the six months prior to the filing for bankruptcy. The unsecured customer deposits are for less than $900 each. Local Crossings, Inc. has no property taxes past due. The first mortgage is secured against the fixed assets of the firm. The debentures are subordinate to the notes payable to banks. The liquidation of the firm's current assets produced $1,298 million and of the firm's fixed assets produced $3,552 million for a total of only $4,850 million in funds to distribute to the creditors and stockholders of the firm.
The administrative expenses associated with the bankruptcy totaled $15 million and unpaid expenses incurred after the filing of the bankruptcy petition but before the trustee was appointed totaled $10 million. Show how the trustee will distribute the $4,850 million of funds among the Local Crossings' creditors and stockholders. How much of the $25,000 debt you own will you recover?

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Local Crossings,Inc Balance Sheet as of May 15,2018 n millions of dollars Assets Liabilities and Equity Current assets Current liabilities S 20 15 50 375 841 1.518 $2,819 Cash andmarketable ed wages (10,500 employees) Accru Unpaid employee benefits Unsecured customer deposits Accrued taxes Accountspayable Notespayable to banks S 406 Accounts receivable Inventory 978 1038 $2,422 Total Fixed assets Total Gross plant and $7,253 1.050 Long-tem debt: equipment $1,200 2.018 $3,218 Less: Depreciation First mortgage Subordinate debentures Net plant and equipment $6,203 Total Stockholders' equity: Common stock and paid-in suiplus Retained eamings Prefered stock (100 million shares) $ 100 1,500 (200 million shares) $2,588 $8,625 Total Total assets $8,625 Totalliabilities and equity