Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

12 Months Ended

Dec. 31, 2022

Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

Note 4—Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Company currently estimates that it will have costs in excess of estimated receipts during the liquidation. These amounts can vary significantly due to, among other things, the timing and estimates for operating expenses, interest earned on reserves and the costs associated with the winding down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period.

At December 31, 2022 and 2021, the Company accrued the following expenses expected to be incurred during liquidation (in thousands):


	2022			2021
General and administrative expenses	$	(1,420	)	$	(2,384	)
Liability for estimated costs in excess of estimated receipts during liquidation	$	(1,420	)	$	(2,384	)

The change in the liability for estimated costs in excess of estimated receipts during liquidation as of December 31, 2022 and 2021 is as follows (in thousands):


	January 1, 2021			Net Change in Working Capital (1)		Remeasurement of Assets and Liabilities			December 31, 2022
General and administrative expenses	$	(2,384	)	$	2,654	$	(1,690	)	$	(1,420	)
Total liability for estimated costs in excess of estimated receipts during liquidation	$	(2,384	)	$	2,654	$	(1,690	)	$	(1,420	)

(1)

Represents changes in cash, restricted cash, accounts receivable, accounts payable and accrued expenses as a result of the Company’s operating activities for the year ended December 31, 2022.


	January 1, 2020			Net Change in Working Capital (1)		Remeasurement of Assets and Liabilities			December 31, 2021
General and administrative expenses	$	(2,342	)	$	2,491	$	(2,533	)	$	(2,384	)
Total liability for estimated costs in excess of estimated receipts during liquidation	$	(2,342	)	$	2,491	$	(2,533	)	$	(2,384	)

(1)

Represents changes in cash, restricted cash, accounts receivable, accounts payable and accrued expenses as a result of the Company’s operating activities for the year ended December 31, 2021.