John Gallaher Partnership Predistribution Plan 10/17/2019

Noncash Liabilities Dennis 2 Edwards 3

total assets Cash Lacy 1 Ingram 4
assets
November beginning balances $ 270,000 $ 25,000 $ 245,000 $ (60,700) $ (62,000) $ (54,000) $ (22,000) $ (71,300)
Sale of assets (16,000) 39,000 (55,000) - 3,200 4,800 1,600 6,400
New balances 254,000 64,000 190,000 (60,700) (58,800) (49,200) (20,400) (64,900)
Paying off liabilities (60,700) (60,700) - 60,700 - - - -
New balances 193,300 3,300 190,000 - (58,800) (49,200) (20,400) (64,900)
Rest of assets at loss (190,000) - (190,000) - 38,000 57,000 19,000 76,000
New balances 3,300 3,300 - - (20,800) 7,800 (1,400) 11,100
Edwards and Ingram insolvent - - - 12,600 (7,800) 6,300 (11,100)
New balances 3,300 3,300 - - (8,200) - 4,900 -
Lacy insolvent - - - - 4,900 - (4,900) -
Final balances - cash distribution $ 3,300 $ 3,300 $ - $ - $ (3,300) $ - $ - $ -

December beginning balances $ 190,000 $ - $ 190,000 $ - $ (55,500) $ (49,200) $ (20,400) $ (64,900)

Sale of assets (21,000) 24,000 (45,000) - 4,200 6,300 2,100 8,400
New balances 169,000 24,000 145,000 - (51,300) (42,900) (18,300) (56,500)
Rest of assets at loss (145,000) - (145,000) - 29,000 43,500 14,500 58,000
New balances 24,000 24,000 - - (22,300) 600 (3,800) 1,500
Edwards and Ingram insolvent - - - - 1,400 (600) 700 (1,500)
Final balances - cash distribution $ 24,000 $ 24,000 $ - $ - $ (20,900) $ - $ (3,100) $ -

January beginning balances $ 145,000 $ - $ 145,000 $ - $ (30,400) $ (42,900) $ (15,200) $ (56,500)

Sale of assets (15,000) 25,000 (40,000) - 3,000 4,500 1,500 6,000
New balances 130,000 25,000 105,000 - (27,400) (38,400) (13,700) (50,500)
Rest of assets at loss (105,000) (105,000) 21,000 31,500 10,500 42,000
Final balances - cash distribution $ 25,000 $ 25,000 $ - $ - $ (6,400) $ (6,900) $ (3,200) $ (8,500)
John Gallaher Partnership Predistribution Plan 10/17/2019

total
total L&C change
$ (270,000) $ -
16,000 $ -
(254,000) $ -
60,700 $ -
(193,300) $ -
190,000 $ -
(3,300) $ -
- $ -
(3,300) $ -
- $ -
$ (3,300) $ -

$ (190,000) $ -
21,000 $ -
(169,000) $ -
145,000 $ -
(24,000) $ -
- $ -
$ (24,000) $ -

$ (145,000) $ -
15,000 $ -
(130,000) $ -
105,000 $ -
$ (25,000) $ -
John Gallaher predistribution plan 10/17/2019

Caso, Loan Andrews 4 Caso 3 Quinn 2 Sheridan 1

Beginning balances $ (10,000) $ (76,000) $ (14,000) $ (51,000) $ (9,000)
Loan offset 10,000 - (10,000) - -
New balances - (76,000) (24,000) (51,000) (9,000)
Andrews 4 Caso 3 Quinn 2 Sheridan 1
4 3 2 1 10
maximum possible loss (190,000) (80,000) (255,000) (90,000) $ (80,000)
distribute $ 32,000 $ 24,000 $ 16,000 $ 8,000
new balances $ (44,000) $ - $ (35,000) $ (1,000)

new ratio 4 2 1 7
maximum possible loss (77,000) (122,500) (7,000) $ (7,000)
distribute $ 4,000 $ 2,000 $ 1,000
new balances $ (40,000) $ (33,000) $ -

new ratio 4 2 6
maximum possible loss (60,000) (99,000) $ (60,000)
distribute $ 40,000 $ 20,000
new balances $ - $ (13,000)

First $ 194,000 to creditors and liquidation expenses

Next $ 13,000 to Quinn
Next $ 60,000 to Andrews and Quinn in a 4:2 ratio
Next $ 7,000 to Andrews, Quinn, and Sheridan, in a 4:2:1 ratio
All above $ 274,000 to Andrews, Caso, Quinn, and Sheridan, in a 4:3:2:1 ratio