Note 5 – Liabilities Subject to Compromise

Liabilities Subject to Compromise represents liabilities incurred prior to the Petition Date which may be affected by the Chapter 11 process. These amounts represent the Debtors’ allowed claims and their best estimate of claims expected to be allowed which will be resolved as part of the bankruptcy proceedings.

Liabilities Subject to Compromise consists of the following as of March 31, 2015:



Accounts Payable	$	5,935
Debt		790,246
Accrued Interest and Dividends		44,719
Total Liabilities Subject to Compromise	$	840,900

Interest Expense

The Debtors have discontinued recording interest expense on unsecured or under-secured liabilities subject to compromise on the Petition Date. Contractual interest not accrued during the first quarter of 2015 was approximately $21.4 million.

Reorganization Items

Reorganization items represent the direct and incremental costs of being in bankruptcy, such as professional fees, pre-petition liability claim adjustments and losses related to terminated contracts that are probable and can be estimated. Reorganization fees for the quarter ended March 31, 2015 related solely to professional fees.