

NOTE 4—FORECLOSED ASSETS

CAH is the only entity in which we held foreclosed assets as of February 29, 2016. CAH had total assets, which consisted primarily of property, plant and equipment and goodwill and other intangible assets of $164 million as of February 29, 2016. CAH had total liabilities of $241 million as of February 29, 2016 and an equity deficit of $77 million. CAH’s total liabilities included loans and interest payable to CFC, which have been eliminated in consolidation, of $190 million as of February 29, 2016.

Sale of CAH

On September 30, 2015, CFC entered into a Purchase Agreement with CAH, ATN VI Holdings, LLC (“Atlantic”) and Atlantic Tele-Network, Inc., the parent corporation of Atlantic, to sell all of the issued and outstanding membership interests of CAH to Atlantic for a purchase price of $145 million, subject to certain adjustments. We expect to complete the transaction during the second half of calendar year 2016, subject to the satisfaction or waiver of various closing conditions under the Purchase Agreement, including, among other things, the receipt of required communications regulatory approvals in the United States, United States Virgin Islands, British Virgin Islands and St. Maarten, the expiration or termination of applicable waiting periods under applicable competition laws, and the absence of a material adverse effect or material adverse regulatory event.

Foreclosed Asset Activity

The table below summarizes amounts recorded in our consolidated financial statements for CAH as of and for the nine months ended February 29, 2016.



	Nine Months Ended February 29, 2016
(Dollars in thousands)	Nine Months Ended February 29, 2016
Balance as of May 31, 2015	$	116,507
Change in estimated net proceeds⁽¹⁾	1,904
Balance as of February 29, 2016	$	118,411

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⁽¹⁾Included as a component of results of foreclosed assets on our consolidated statements of operations.

The amount recorded on our condensed consolidated balance sheet for CAH of $118 million as of February 29, 2016 reflects the expected net proceeds from the completion of the CAH sales transaction. The expected net proceeds is based on the contractual purchase price of $145 million, plus agreed-upon purchase price adjustments less estimated selling costs.