Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

9 Months Ended

Sep. 30, 2021

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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 September 30, 2021 and December 31, 2020, the Company had accrued the following net expenses expected to be incurred during liquidation (in thousands):

	September 30, 2021		December 31, 2020
General and administrative expenses	$	2,332	$	2,342
Liability for estimated costs in excess of estimated receipts during liquidation	$	2,332	$	2,342

The change in the liability for estimated costs in excess of estimated receipts during liquidation for the nine months ended September 30, 2021 and 2020 are as follows (in thousands):

	January 1, 2021			Net Change in Working Capital (1)		Remeasurement of Assets and Liabilities			September 30, 2021
Liabilities:
General and administrative expenses	$	(2,342	)	$	1,910	$	(1,900	)	$	(2,332	)
Total liability for estimated costs in excess of estimated receipts during liquidation	$	(2,342	)	$	1,910	$	(1,900	)	$	(2,332	)

	January 1, 2020			Net Change in Working Capital (1)		Remeasurement of Assets and Liabilities			September 30, 2020
Liabilities:
General and administrative expenses	$	(2,348	)	$	2,156	$	(2,098	)	$	(2,290	)
Total liability for estimated costs in excess of estimated receipts during liquidation	$	(2,348	)	$	2,156	$	(2,098	)	$	(2,290	)

(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 nine months ended September 30, 2021 and 2020.