Teachers' Retirement System, Department of Administration, a Component Unit of the State of Montana : Financial Audit for the Fiscal Year Ended June 30 .. 2005

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In September 2000, the company announced a reduction of stockholders equity. Due to an increasing senior bank line and declining credit trend, the bond ratings for this issue were downgraded, in May 2001, by the Moody's and Standard & Poor's rating agencies. During fiscal year 2001, the book value of Burlmgton Industnes Inc. was reduced from the August 31, 2000 book value of $5,609,640 to $2,400,000. Due to the company's filing for Chapter 1 1 bankruptcy Page A- 15 protection on November 11, 20...01, the book value was reduced to SI. 200,000. In October 2003, Burlington Industries, Inc. received court approval to sell its assets. Under the company's recovery plan, the BOl received SI, 454,961 in August 2004 for its unsecured claim. This transaction reduced the book value to SO and generated a gain of S254,961.
In February 2005 and May 2005, the BOI received an additional $208,771 and SI 94,247, respectively, for its unsecured claim. The BOI is expected to receive additional proceeds over the next two to three years.


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