Determining the dividend to unsecured creditors without priority and restructuring alternatives. Matmart Corporation is contemplating seeking a voluntary liquidation under Chapter 7 of the Bankruptcy...

Determining the dividend to unsecured creditors without priority and restructuring alternatives. Matmart Corporation is contemplating seeking a voluntary liquidation under Chapter 7 of the Bankruptcy Reform Act. There are a large number of partially secured creditors who are opposed to the possibility of a liquidation and favor a restructuring of their debt, which will allow the corporation to return to profitability and positive operating cash flows. Values relevant to a possible liquidation are as follows:

Of the net realizable value of inventory, $200,000 is pledged against $250,000 of accounts payable and the balance of the inventory is pledged against the note payable. All of the equipment is pledged against the note payable. The mortgage payable and the related accrued interest is secured by the land and building.

1. Determine the dividend to general unsecured creditors and the amount of total consideration that would be received by the holder of the note payable.