Exhibit 1: Simplified Pinewood Mobile Homes Inc. Financial Statements, 2001-2010 (U.S.

$ millions)
2001 2002 2003 2004 2005 2006 2007
Income Statement
Net sales 943.2 988.4 1,080.3 1,216.2 1,358.5 1,501.1 1,271.4
Cost of goods sold 784.7 823.3 898.8 1,016.7 1,131.6 1,265.4 1,143.0
Gross profit 158.5 165.1 181.5 199.5 226.9 235.7 128.4
SG&A 108.5 110.7 119.9 135.0 150.8 169.6 160.2
Depreciation and amortization 6.5 15.8 16.1 19.7 34.5 35.1 41.2
Operating profit 43.5 38.5 45.5 44.8 41.5 30.9 (73.0)
Restructuring charges - - - - - - -
Loss on asset impairment - - - - - - -
Interest expense 2.4 1.4 1.0 2.3 11.5 14.4 22.6
Income tax expense 14.4 13.0 15.6 14.9 10.5 5.8 (33.1)
Net income 26.7 24.1 28.9 27.6 19.5 10.7 (62.5)

Number of preferred shares outstanding (million) 25.0 25.0 25.0 25.0 25.0 25.0 25.0
Preferred dividends (U.S. $ millions) $4.50 $4.50 $4.50 $4.50 $4.50 $4.50 $4.50
Number of common shares outstanding (million) 64.8 64.8 64.8 64.8 64.8 64.8 64.8
EPS (common stock) $0.34 $0.30 $0.38 $0.36 $0.23 $0.10 $(1.03)
Common dividend per share $0.10 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10
Share price $10.50 $12.60 $13.41 $13.30 $12.70 $10.74 $8.40

2001 2002 2003 2004 2005 2006 2007

Balance sheet
Cash 50.5 44.2 43.7 70.8 77.2 103.3 63.2
Accounts receivable 73.7 76.4 89.7 103.4 125.0 151.6 179.3
Inventory 130.2 143.3 155.6 171.5 188.8 210.2 190.7
Other current assets 2.3 5.1 4.9 5.0 6.9 4.9 5.3
Current assets 256.6 269.0 293.9 350.7 397.9 470.0 438.5
Gross PP&E 237.5 257.3 321.0 538.7 580.8 697.4 722.8
Cumulative depreciation 26.5 42.3 58.4 78.1 112.7 147.8 189.0
Net PP&E 211.0 214.9 262.5 460.6 468.1 549.6 533.8
Investments and other assets 5.6 6.0 6.5 7.0 7.2 7.4 6.8
Total assets 473.2 490.0 562.9 818.2 873.2 1,027.0 979.1

Accounts payable 70.6 75.7 83.6 92.5 106.4 116.4 108.6

Accrued taxes 16.4 17.4 19.4 21.1 19.0 15.6 (21.1)
Short-term bank borrowing 49.5 47.0 92.1 35.2 69.9 47.3 158.2
Current portion of long-term debt - - - - - 40.7 40.7
Current liabilities 136.5 140.1 195.1 148.8 195.3 220.0 286.4
Total long-term debt - - - 285.0 285.0 414.3 373.6
LT Debt:10-year bond (senior) - - - 285.0 285.0 244.3 203.6
LT Debt: 7-year bond (junior) - - - - - 170.0 170.0
Total liabilities 136.5 140.1 195.1 433.8 480.3 634.3 660.0
Preferred shareholders' equity 75.0 75.0 75.0 75.0 75.0 75.0 75.0
Common shareholders' equity 261.7 274.9 292.8 309.4 317.9 317.7 244.2
Total liabilities and equity 473.2 490.0 562.9 818.2 873.2 1,027.0 979.1
 2008 2009 2010

918.0 825.0 875.3

832.6 746.6 775.5
85.4 78.4 99.8
118.4 105.6 98.9
40.0 32.5 25.3
(73.1) (59.7) (24.4)
- 20.8 22.4
22.2 26.3 22.8
24.1 19.8 18.2
(41.2) (36.0) (21.0)
(78.2) (90.7) (66.9)

25.0 25.0 25.0

$4.50 $2.25 -
64.8 64.8 64.8
$(1.28) $(1.43) $(1.03)
$0.10 $0.05 -
$4.10 $1.54 $1.02

2008 2009 2010

45.6 32.6 20.3

148.7 137.8 130.4
167.1 145.2 138.3
7.9 7.1 7.8
369.3 322.7 296.9
662.7 598.9 558.8
229.0 261.6 286.9
433.7 337.3 272.0
6.5 6.4 5.9
809.4 666.4 574.7

84.9 76.9 79.9

(41.5) (67.3) (79.2)
162.5 190.1 215.0
40.7 40.7 40.7
246.6 240.4 256.4
332.9 292.1 251.4
162.9 122.1 81.4
170.0 170.0 170.0
579.5 532.6 507.8
75.0 75.0 75.0
155.0 58.8 (8.1)
809.4 666.4 574.7
Exhibit 2: Consolidated Capitalization as of December, 2010 (U.S. $ millions)
Short-term debt
Variable/LIBOR +1% p.a., revolving loan facility, due 3/31/2011 215.0
Current portion of senior unsecured notes, due 4/15/2011a 40.7

Long-term debt
Fixed/3.5% p.a., senior unsecured notes, due 4/15/2014 81.4
Fixed/6.5% p.a., subordinated convertible debenture, due 6/15/2016 170.0

Total Debt 507.1

Equity
$3.00 preferred stockb 75.0
Common stockc (8.1)

Total equity 66.9

Total capitalization 574.0

a
Due date for current portion of long-term debt only.
b
Cumulative preferred stock, 25,000,000 shares outstanding, $75 million liquidation value.
c
64,800,000 shares outstanding.
Err:502
141.4 5 28.44 25 5 5.03
124.3003 5 25.00
Exhibit 3: Debt Service Requirement for Next 12 Months as of December, 2010 (U.S. $ millions)
Interest Principal Total
Variable/LIBOR +1% p.a. of 3/31/2011a 0.8 215.0 215.8
Fixed/3.5% p.a. of 4/15/2014 2.9 40.7 43.6
Fixed/6.5% p.a. of 6/15/2016 11.1 - 11.1

Bank debt 0.8 215.0 215.8

Long-term debt 13.9 40.7 54.6

Total debt 14.7 255.7 270.4

a
Principal repayments of revolving facility assume no extension of maturity.
Exhibit 4a: Five-Year Cash Flow Projection for Pinewood - Assuming no Sale of EcoLiving, 2011-2015 (U.S. $ millions)
2011 2012 2013 2014
Sales growth 6.8% 6.0% 5.5% 4.5%
Gross margin 12.5% 13.0% 13.5% 13.5%
Operating margin 2.0% 3.0% 4.0% 4.5%
Sales 934.8 990.9 1,045.4 1,092.5
Gross profits 116.9 128.8 141.1 147.5
Operating profits 18.7 29.7 41.8 49.2
Income tax 6.5 10.4 14.6 17.2
Net operating profits after tax 12.2 19.3 27.2 32.0
Depreciation & amortization 26.6 27.8 29.9 30.8
Change in Net WC and accrued taxes 4.9 (9.7) (9.6) (5.9)
Capex 18.2 11.2 11.5 11.9
FCFa 15.7 45.6 55.2 56.8

Exhibit 4b: Five-Year Cash Flow Projection for Pinewood - Assuming Sale of EcoLiving, 2011-2015 (U.S. $ millions)
2011 2012 2013 2014
Sales growth 3.5% 3.5% 3.0% 2.5%
Gross margin 11.5% 11.5% 12.0% 12.0%
Operating margin 1.0% 2.0% 2.5% 3.5%
Sales 507.3 525.1 540.8 554.4
Gross profits 58.3 60.4 64.9 66.5
Operating profits 5.1 10.5 13.5 19.4
Income tax 1.8 3.7 4.7 6.8
Net operating profits after tax 3.3 6.8 8.8 12.6
Depreciation & amortization 12.2 13.0 13.5 13.8
Change in Net WC and accrued taxes 2.2 (3.5) (3.3) (2.2)
Capex 4.1 2.6 2.8 2.9
FCFb 9.2 20.7 22.8 25.7
a
Perpetual growth of FCF after 2015 is assumed to be 3.5%
b
Perpetual growth of FCF after 2015 is assumed to be 2.5%
U.S. $ millions)
2015
3.5%
13.5%
4.5%
1,130.7
152.6
50.9
17.8
33.1
31.1
(5.1)
9.9
59.4

2015
2.5%
12.5%
3.5%
568.2
71.0
19.9
7.0
12.9
14.0
(1.4)
2.1
26.2
Exhibit 5: Selected Capital Markets Information and Pinewood's Equity Beta as of March 1, 2011
Treasury ratesa
3-month Treasury bill 0.14%
1-year Treasury note 0.23%
10-year Treasury note 3.41%

Corporate bond yieldsb

Aaa 5.09%
Aa 5.31%
A 5.73%
Baa 6.00%
Ba 6.81%

Market risk premiumc 6.10%

Pinewood common equity betad 2.79

a
Source: Federal Reserve System
b
Source: Moody's
c
Based on 30-year annualized S&P 500 return (dividends assumed reinvested)
d
Equity beta is estimated based on daily equity returns over the previous 36 months
Exhibit 6: Comparative Market and Operating Data for Selected Prefabricated Home Manufacturers as of the End of 2010
Key financial ratios
Revenue
(U.S. $ 3 Yr. growth Gross Operating Net profit Debt to Debt to
million) rate margin margin margin capitalization equity Market cap
King Enterprises $1,315.6 (9.7%) 10.4% (1.3%) (3.6%) 56.1% 127.8% $995.2
Dycon Industries $699.1 (11.9%) 12.2% 4.3% 1.2% 63.6% 174.7% $558.4
Timeline Homes Inc. $146.2 (22.8%) 7.5% (6.3%) (8.6%) 30.1% 43.1% $111.5
Cove Harbor Homes Co. $302.8 (15.6%) 19.6% (1.6%) (6.9%) 69.7% 230.0% $238.9
of the End of 2010

Equity beta
2.02
2.42
1.48
2.69
Exhibit 7: Outline of the Proposed Exchange Offer (U.S. $ millions)
Old securities Principal Original Maturity Security Market price
value interest/ as of March
dividend rate 2011

Revolving Loan $215.0 Libor plus 1% 03/31/11 First lien on 100

Facility virtually all
assets

Unsecured Senior $122.1 3.5% 01/31/14 None 65 1/2

Notes

Subordinated $170.0 6.5% 06/30/13 None 24 1/4

Convertible
Debenture

Preferred Equitya $81.8 6.0% n/a None $1.35/share

Common Equity $129.6 n/a n/a None $1.09/share

a
Principal value includes liquidation value plus accumulated arrearage of $6.75 million.
 Proposed exchange offer Required Interest on new Maturity
acceptance debt of new debt

For each $1,000 face value of existing debt, receive $1,050 of new term 100% Libor plus 1.5% 03/31/16
loan. Principal terms of new debt: interest rate: Libor plus 1.5%;
Maturity, March 31, 2016; amortization schedule: equal annual
amortization payments beginning March 31, 2013; optional redemption:
permitted for whole principal at any time after March 31, 2013; security:
first lien on virtually all assets; restrictive covenants: same as under old
debt contract, but different thresholds.

For each $1,000 face value of existing debt, receive $640 of new senior 85% 5.5% 03/31/18
unsecured notes plus 517 shares of new common stock, representing
21.32% of reorganized common equity. Principal terms of new bond:
Coupon rate: 5.5%; maturity: March, 31, 2018; amortization schedule:
equal annual payments beginning March 31, 2013 to retire 75% of the
principal before maturity; optional redemption: none; security: second
lien on virtually all assets; restrictive covenants: identical to covenants
in new bank debt.

For each $1,000 face value of existing debt, receive $250 of new 85% 7.0% 12/15/19
subordinated bond plus 644 shares of new common stock, representing
36.97% of the reorganized common stock, plus 10-year warrants to
purchase 50 shares of new common stock with a strike price of $7.
Principal terms of the new bond: Interest rate: 7%; maturity: December,
15, 2019; principal due at maturity; optional redemption: permitted for
whole principal at any time after December 31, 2015; security: not
secured; restrictive covenants: none.

For each preferred share, receive 2.35 shares of new common stock, 67% n/a n/a
representing 19.84% of the reorganized common stock, plus 10-year
warrants to purchase 1 share of new common stock with a strike price of
$7.

Retain 64.8 million outstanding common shares, representing 21.88% of n/a n/a
the reorganized common stock.

f $6.75 million.
Exhibit 8: Pro Forma Effects of Proposed Exchange Offer on Pinewood Capitalization (U.S. $ millions)

Minimum Needed
Pre-Exchange 100% Acceptancea
Acceptanceb
Short-term debt
Secured bank revolving facility 215.0 - -
Current portion of senior unsecured notesc 40.7 - 6.1

Long-term debt
Secured bank debt - 225.8 225.8
Senior unsecured notes 81.4 78.2 78.7
Subordinated debenture 170.0 42.5 61.6

Total Debt 507.1 346.4 372.1

Equity
$3.00 preferred stock 75.0 - 24.8
Common stock (8.1) 227.6 177.1

Total equity 66.9 227.6 201.9

Total capitalization 574.0 574.0 574.0

Common shares (000) 64,800 296,156 250,877

a
Assumes 100% acceptance of the exchange offer in Exhibit 7 by holders of Pinewood debt.
b
Assumes acceptance by the minimum amounts of debt and preferred stock needed to make the exchange effective, per Exhibit 7.
c
Due date for current portion of long-term debt only.
Exhibit TN-1: Key Financial Ratios of Pinewood, 2001-2010
2001 2002 2003 2004 2005 2006 2007
Operations
Revenue growth - 4.8% 9.3% 12.6% 11.7% 10.5% (15.3%)
SG&A % sales 11.5% 11.2% 11.1% 11.1% 11.1% 11.3% 12.6%
A/R % sales 7.8% 7.7% 8.3% 8.5% 9.2% 10.1% 14.1%
A/R turnover - 13.2x 13.0x 12.6x 11.9x 10.9x 7.7x
Average collection period - 27.7 28.1 29.0 30.7 33.6 47.5
Inventory % sales 13.8% 14.5% 14.4% 14.1% 13.9% 14.0% 15.0%
Inventory turnover - 7.2x 7.2x 7.4x 7.5x 7.5x 6.3x
Inventory conversion period - 50.5 50.5 49.1 48.4 48.5 57.5
Payable % COGS 9.0% 9.2% 9.3% 9.1% 9.4% 9.2% 9.5%
Payable turnover - 11.2x 11.3x 11.5x 11.4x 11.4x 10.2x
Payable deferral period - 32.4 32.4 31.6 32.1 32.1 35.9
Cash conversion cycle - 45.8 46.2 46.4 47.0 50.0 69.1

Profitability & growth

Gross margin 16.8% 16.7% 16.8% 16.4% 16.7% 15.7% 10.1%
Operating margin 4.6% 3.9% 4.2% 3.7% 3.1% 2.1% (5.7%)
Net margin 2.8% 2.4% 2.7% 2.3% 1.4% 0.7% (4.9%)
ROA 9.2% 7.9% 8.1% 5.5% 4.8% 3.0% (7.5%)
ROE 7.9% 6.9% 7.9% 7.2% 5.0% 2.7% (19.6%)

Leverage
Debt to equity 6.6% 5.3% 9.8% 34.2% 39.5% 65.2% 92.4%
Debt to capitalization 6.1% 5.0% 8.9% 25.5% 28.3% 39.5% 48.0%
Interest coverage ratio - - 61.7x 28.0x 6.6x 4.6x -

Liquidity ratios
Current ratio 1.9x 1.9x 1.5x 2.4x 2.0x 2.1x 1.5x
Quick ratio 0.9x 0.9x 0.7x 1.2x 1.1x 1.2x 0.9x

Valuation
P/E 30.6x 41.6x 35.6x 37.3x 54.9x 111.9x -
P/B 2.6x 3.0x 3.0x 2.8x 2.6x 2.2x 2.2x
 2008 2009 2010

(27.8%) (10.1%) 6.1%

12.9% 12.8% 11.3%
16.2% 16.7% 14.9%
5.6x 5.8x 6.5x
65.2 63.4 55.9
18.2% 17.6% 15.8%
5.1x 5.3x 6.2x
71.1 69.1 59.1
10.2% 10.3% 10.3%
8.6x 9.2x 9.9x
42.4 39.6 36.9
93.9 92.9 78.1

9.3% 9.5% 11.4%

(8.0%) (7.2%) (2.8%)
(8.5%) (11.0%) (7.6%)
(11.8%) (16.0%) (12.1%)
(34.0%) (67.7%) (100.0%)

157.4% 299.2% 359.4%

61.1% 74.9% 78.2%
- - 0.0x

1.5x 1.3x 1.2x

0.8x 0.7x 0.6x

- - -
1.7x 1.7x -
Exhibit TN-2: Estimated Distributions to Claimants Based on Liquidation of Assets (U.S. $ millions)
Market value
Assets
Cash 20.3
Receivable and inventory 221.2
PP&E 217.6
Miscellaneous assets 4.7
Total 463.8

Claims
Revolving loan facility (face amount $215) 215.0
Senior unsecured notes (face amount $122.1 @ 65 1/2) 80.0
Subordinated convertible debenture (face amount $170.0 @ 24 1/4) 41.2
Trade claims (face amount $79.9 assuming @ 29) 23.2
Preferred equity (25 million shares @ $1.35) 33.8
Common equity (64.8 million shares @ $1.09) 70.6
Total 463.8
Exhibit TN-3: Estimation of WACC

First, calculate the beta of a hypothetical all-equity firm in the industry based on the four comparable
firms listed in case Exhibit 6. The calculation is based on the formula below, where E stands for market
capitalization and D stands for total debt:
_= ( _/((+
(()(/))
King Enterprises: (unlevered) =2.02/ ((1 + (1 - 0.35) * 127.8%)) = 1.10
Dycon Industries: (unlevered) = 2.42 / ((1 + (1 - 0.35) * 174.7%)) = 1.13
Timeline Homes: (unlevered) = 1.48 / ((1 + (1 - 0.35) * 43.1%)) = 1.16
Cove Harbor Homes: (unlevered) = 2.69 / ((1 + (1 - 0.35) * 230.0%)) = 1.08
The unlevered industry beta is calculated as the weighted average of the unlevered betas by their market
cap. (unlevered) = 1.11

Second, using CAPM with capital market data provided in case Exhibit 5, we get the cost of unlevered
equity of the industry:
_=_+_ ( __) 10.19%

Finally, in order to determine the cost of capital of Pinewood we need to know their target leverage ratio,
which can be reflected in their historical levels or estimated using industry leverage. However, given
that the industry was likely in distress the industry average should not be used as the target. Instead,
students may use the average debt to capitalization ratio (35% from Exhibit TN-1) and debt to equity
ratio (58% from Exhibit TN-1) of Pinewood during its expansion period from 2004 to 2007 as the target
for calculating WACC. Using the equation above we can calculate the cost of levered equity:
_=_(+(()(/))
1.53

Using CAPM we get the cost of levered equity: Rf + beta(levered) * Rm = 12.74%

The cost of debt of the company can be based on Ba rated bond yield in Exhibit 5. Therefore, the
weighted average cost of capital is:
=/(+)_+/(+)()_ 9.81%
Exhibit TN-4a: Estimation of Pinewood Value Based on DCF Approach - Assuming no Sale of EcoLiving
(U.S. $ millions)
2011 2012 2013 2014 2015
WACC 9.81%

FCFa = $15.7 $45.6 $55.2 $56.8 $59.4

Annual PV = $14.3 $37.8 $41.7 $39.0 $37.2
PV(FCF) discounted @WACCb = $170.0
TVc = Perpetuity growing at 3.5% annually from end of 2015
= $59.4 * (1+0.035) / (9.81% - 0.035)
= $974.5 (PV at the end of 2015)
PV(TV) discounted @ WACC = $610.5
Enterprise value = $780.5

Exhibit TN-4b: Estimation of Pinewood Value Based on DCF Approach - Assuming Sale of EcoLiving
(U.S. $ millions)
2011 2012 2013 2014 2015
WACC 9.81%

FCF = $9.2 $20.7 $22.8 $25.7 $26.2

Annual PV = $8.4 $17.2 $17.2 $17.7 $16.4
PV(FCF) discounted @ WACC = $76.9
TV = Perpetuity growing at 2.5% annually from end of 2015
= $26.2 * (1+0.025) / (9.81% - 0.025)
= $368.0 (PV at the end of 2015)
PV(TV) discounted @ WACC = $230.5
Enterprise value = $307.4
a
Free Cash Flow per Exhibit 4.
b
The weighted average cost of capital per Exhibit TN-3
c
Terminal value
Exhibit TN-5: Sensitivity of Pinewood Valuation with WACC Estimation and Terminal Growth Assumptions (U.S. $ millions)
Perpetual growth rate of Pinewood
2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75%
9.00% 736.4 758.7 782.7 808.6 836.6 867.1 900.3 936.7
9.25% 709.6 730.1 752.2 775.9 801.5 829.3 859.5 892.5
Discount rate

9.50% 684.5 703.5 723.8 745.7 769.2 794.6 822.2 852.1

9.75% 661.0 678.6 697.5 717.6 739.3 762.6 787.8 815.1
10.00% 639.1 655.4 672.9 691.5 711.5 732.9 756.0 781.0
10.25% 618.4 633.6 649.8 667.1 685.6 705.4 726.7 749.6
10.50% 599.0 613.2 628.3 644.3 661.5 679.8 699.4 720.5
10.75% 580.7 594.0 608.0 623.0 638.9 655.9 674.0 693.5
11.00% 563.4 575.8 589.0 602.9 617.7 633.5 650.3 668.3
Assumptions (U.S. $ millions)

4.00% 4.25% 4.50%

976.8 1,021.1 1,070.3
928.6 968.3 1,012.1
884.7 920.5 959.8
844.7 877.1 912.5
808.0 837.4 869.5
774.3 801.1 830.2
743.2 767.7 794.2
714.3 736.8 761.1
687.6 708.3 730.6
Exhibit TN-6: Estimated Value of Distributions to Claimants Based on DCF Approach, Assuming 100% Acceptance
Rate of Exchange Offer (U.S. $ millions)

Estimated Enterprise Value of Pinewood (Base Case: WACC @ 9.81%, perpetual growth @ 3.5%) 780.5
Less:
Revolving loan facility (at 105% face amount $215) 225.8
Senior unsecured notes (64% of face amount $122.1) 78.2
Subordinated convertible debenture (25% of face amount $170.0) 42.5
Estimated value of common stock 434.1

Recovery relative to face Recovery relative to

Distribution to claim holders amount market value 3/1/11
Revolving loan facility 105.0% 105.0%
Senior unsecured notes 139.8% 213.4%
Subordinated convertible debenture 119.4% 492.4%
Preferred equitya 105.3% 255.2%
Common stock - 134.5%

Estimated Enterprise Value of Pinewood (Worst Case: WACC @ 11%, perpetual growth @ 2.0%) 563.4
Less:
Revolving loan facility (at 105% face amount $215) 225.8
Senior unsecured notes (64% of face amount $122.1) 78.2
Subordinated convertible debenture (25% of face amount $170.0) 42.5
Estimated value of common stock 217.0

Recovery relative to face Recovery relative to

Distribution to claim holders amount market value 3/1/11
Revolving loan facility 105.0% 105.0%
Senior unsecured notes 101.9% 155.5%
Subordinated convertible debenture 72.2% 297.7%
Preferred equity 52.7% 127.6%
Common stock - 58.7%
a
Recovery to preferred equity does not include the value of warrants distributed.

Note: It is important to recognize that the allocation of enterprise value calculated in Exhibit TN-6 implicitly assumes that trade credit
will be paid at 100% of face value in the ordinary course of running the business going forward. It will not suffer any haircut in the
proposed out-of-court restructuring
Exhibit TN-7a: Estimated Value of Distributions to Claimants Based on Sale of Company Assets (U.S. $ millions)
Sale price
Less:
Revolving loan facility
Senior unsecured notes
Subordinated convertible debenture
Trade claims
Preferred equity
Estimated value of common stock

Recovery relative to face

Distribution to claim holders based on proposal amount
Revolving loan facility 100.0%
Senior unsecured notes 100.0%
Subordinated convertible debenture 80.6%
Trade claims 88.7%
Preferred equity -
Common stock -

Exhibit TN-7b: Estimated Value of Distributions to Claimants Based on Sale of EcoLiving Assets and Other Assets (U.S. $ millions)
Assets
EcoLiving Homes
Other assetsa
Total
Less:
Revolving loan facility
Senior unsecured notes
Subordinated convertible debenture
Trade claims
Preferred equity
Estimated value of common stock

Recovery relative to face

Distribution to claim holders based on proposal amount
Revolving loan facility 100.0%
Senior unsecured notes 100.0%
Subordinated convertible debenture 85.2%
Trade claims 91.4%
Preferred equity -
Common stock -
a
Based on the average proceeds from a quick sale.
Assets (U.S. $ millions)
545.0

215.0
122.1
137.0
70.9
-
0.0

Recovery relative to
market value 3/1/11
100.0%
152.6%
332.4%
-
-
-

Assets and Other Assets (U.S. $ millions)

365.0
190.0
555.0

215.0
122.1
144.9
73.0
-
0.0

Recovery relative to
market value 3/1/11
100.0%
152.6%
351.5%
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-
-
Exhibit TN-8: Calculation of Values for the Top Panel of Exhibit TN-7a Showing How a Subordination
Agreement Works ($ millions)
Sale Price 545.0
Less: Secured Debt 215.0
Available for Unsecured Creditors 330.0

Total Claims of Unsecured Creditors 372.0

1ST Cut Payoff Percentage 333.0/372.0 = 88.71%

1st Cut Payoff for Reallocation Due to Final Payoff After

Unsecured Creditors Subordination Subordination
@88.71% Agreement Reallocation

Senior unsecured notes 108.3 13.8 122.1

Subordinated convertible debenture 150.8 (13.8) 137.0
Trade claims 70.9 - 70.9
Total 330.0 330.0