On October 3, 2012, the Court entered an order confirming the Plan. For a description of some of the significant financial effects of the Plan, see Note 2 — Voluntary Reorganization Under Chapter 11.
The Company is currently evaluating the accounting guidance which will be applied to the financial statements upon emergence. The accounting guidance being considered includes: (i) Fresh Start Accounting in accordance with Accounting Standards Codification (“ASC”) Topic 852-Reorganizations, which revalues the Company’s assets and liabilities, (ii) Troubled Debt Restructuring in accordance with ASC 470-60 - Troubled Debt Restructurings by Debtors, which may recognize a gain or loss on the modified terms of its debt, or (iii) Debt Modification or Extinguishment in accordance with ASC 470-50-Modifications or Extinguishment [Debt] which may also recognize a gain or loss on the modified terms.
The Company currently expects to consummate the Restructuring and give effect to the terms of the Plan later this month.