Liabilities Subject to Compromise

6 Months Ended

Jun. 30, 2021

Liabilities Subject to Compromise

NOTE 8 - Liabilities Subject to Compromise

8. Liabilities Subject to Compromise

The accompanying unaudited condensed consolidated balance sheet as of June 30, 2021 includes amounts classified as liabilities subject to compromise, which represents Pre-petition liabilities the Company anticipates will be allowed as claims in the Chapter 11 Cases. These amounts represent the Company’s current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases and may differ from actual settlement amounts. The Company will continue to evaluate these liabilities throughout the Chapter 11 process and adjust amounts as necessary. Such adjustments could be material and will be recorded in reorganization items, net in the accompanying unaudited condensed statements of operations.

The following table summarizes liabilities subject to compromise at June 30, 2021:

Accrued maintenance costs	$	46,100
Drake Indebtedness:
Principal		76,861,500
Accrued interest		124,100
PPP Loan:
Principal		170,000
Accrued interest		600
Derivative termination liability		3,075,300
	$	80,277,600