Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019, the Company had accrued the following net expenses expected to be incurred during liquidation (in thousands):


	March 31, 2020			December 31, 2019
General and administrative expenses	$	(2,627	)	$	(2,348	)

Liability for estimated costs in excess of estimated receipts during liquidation	$	(2,627	)	$	(2,348	)

The change in the liability for estimated costs in excess of estimated receipts during liquidation for the three months ended March 31, 2020 and 2019 are as follows (in thousands):


	January 1, 2020			Net Change in Working Capital (1)		Remeasurement of Assets and Liabilities			March 31, 2020
Liabilities:
General and administrative expenses	$	(2,348	)	$	682	$	(961	)	$	(2,627	)

Total liability for estimated costs in excess of estimated receipts during liquidation	$	(2,348	)	$	682	$	(961	)	$	(2,627	)


	January 1, 2019			Net Change in Working Capital (1)		Remeasurement of Assets and Liabilities			March 31, 2019
Liabilities:
General and administrative expenses		(3,208	)		586		(616	)		(3,238	)

Total liability for estimated costs in excess of estimated receipts during liquidation	$	(3,208	)	$	586	$	(616	)	$	(3,238	)

(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 three months ended March 31, 2020 and 2019.