Net Assets in Liquidation

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

5.	Net Assets in Liquidation

The following is a reconciliation of Shareholder’s Equity under the going concern basis of accounting to net assets in liquidation under the liquidation basis of accounting as of August 1, 2014 (in thousands):


Shareholder’s Equity as of July 31, 2014	$	476,454
Increase due to estimated net realizable value of investments in real estate		220,338
Increase due to estimated net realizable value of equity investments		182,472
Increase due to estimated net realizable value of loans receivable		6,071
Secured financing		(1,699	)
Loan securities		692
Deconsolidation of properties		10,178
Decrease due to write-off of assets and liabilities		(44,691	)
Increase in non-controlling interest		(35,675	)
Liability for estimated costs in excess of estimated receipts during liquidation		(27,225	)

Adjustment to reflect the change to the liquidation basis of accounting		310,461

Estimated value of net assets in liquidation as of August 1, 2014	$	786,915

Net assets in liquidation decreased by $118,621,000 during the period August 1, 2014 through September 30, 2014. The primary reason for the decline in net assets was due to the liquidating distributions to Series D Preferred Shareholders, net of previously accrued amounts, totaling $121,890,000.

The net assets in liquidation at September 30, 2014 would result in liquidating distributions of approximately $18.35 per Common Share. This estimate of liquidating distributions includes projections of costs and expenses to be incurred during the period required to complete the plan of liquidation. There is inherent uncertainty with these projections, and they could change materially based on the timing of the sales, the performance of the underlying assets and any changes in the underlying assumptions of the projected cash flows.