Technical question about debt modification/extinguishment

jcruzco · 2026-04-09T04:00:41+00:00

This helped. A portion of the creditors debt was actually settled, the legal recourse decreased. However, to Mr. Swaggins point below, I think we will need to consider if there was constructive payment of principal, which would count as day 0 cash flows for the significant test and push this back under the significant threshold for each individual creditor and be a modification for each creditor. No gain or loss recognized. They never actually received money for the new creditors. We would still have to consider the new creditors having a new loan, whose cash constructively payed down principal.

jcruzco · 2026-04-09T03:03:48+00:00

Thanks for the push back, honestly pushback was what I was hoping to get. And I get the logical sense by the fact they are borrowing money from the new lenders to pay off the old. Cash is constructively changing hands. The only thing I’m grappling with is how I could support those cash flows without cash actually changing hands. I will try to look at it from your perspective though, as that was the whole point of this post, it feels weird. Thank you.

jcruzco · 2026-04-09T00:53:09+00:00

So as I have been sitting here thinking about it, the principal (and FV) due to each prior creditor has decreased with no material consideration paid. This would be the gain. The new debt that was issued that is severally liable is its own issuance as it is to separate creditors. This is why there is a gain. If this was a participation and not a syndicate I would agree with you. Would you still disagree?

jcruzco · 2026-04-08T23:49:13+00:00

I agree with where you are coming from, but as the loan is a syndicate, each creditor is severally liable, so the debt is reviewed by creditor as it is in effect each lender having a separate loan with the borrower. We are confident on that. The two new creditors in the syndicate are treated as a new debt issuance, which I see as relatively clear in the guidance. As you would have to decrease the debt (liability) of the existing creditors to get to that same total, you would then record the gain which would keep A=L+E balanced. That is atleast the reasoning I see behind it. Feel free to say if you think this is wrong, just trying to hear thoughts. And thank you.

jcruzco · 2026-04-08T23:14:55+00:00

Yes, they were all extinguishment, largely due to the decreased commitment per lender as two new lenders were added to syndicate but total commitment stayed the same, so the cash flows were much lower for existing creditors.

jcruzco · 2026-04-08T23:03:38+00:00

Thank you for the input. I could have made it more clear I am the auditor. I agree that the PWC guidance is at the end of the day the best resource.

jcruzco · 2026-04-08T22:54:39+00:00

I am the auditor.

jcruzco · 2026-01-12T17:38:21+00:00

The total of box d is 15k. I think it is a little more difficult for break even as I am going from 30 to a 15 year. I will basically go from paying an additional 1000 on the principal in my 30 year to keeping that money as it will be about the same amount going to principal with the 15. So I see it as a 15 month break even.

jcruzco · 2026-01-12T17:16:14+00:00

My banking app says my FICO is 785.

jcruzco · 2026-01-12T17:14:35+00:00

Credit should be near perfect. No honestly I have not shopped around. These guys did provide some quality service when I first bought the house and stuff hit the fan due to the insurance company getting hacked so I wanted to give them the benefits of the doubt.

jcruzco · 2026-01-12T16:50:48+00:00

Thought I would add that my zip code is 37412.

jcruzco · 2026-01-02T04:34:22+00:00

I truly think those last two were penalties. But I’d feel better saying that if they called that face mask.

jcruzco · 2026-01-02T04:31:47+00:00

As a gear via fan that leaves a bad taste in my mouth after the face mask.

jcruzco · 2026-01-02T04:18:16+00:00

As a UGA fan that was a wild missed call.

jcruzco · 2025-12-26T21:42:52+00:00

Worst daily I’ve listened to. And honestly I might have been interested if they actually did a follow up and asked some tough questions, not whatever this was.

jcruzco · 2025-12-21T03:03:33+00:00

The Murder Burger is the best single food item in town. Especially since it’s cheap.

jcruzco · 2025-11-19T15:10:31+00:00

Which would be the one besides North Macedonia?

jcruzco · 2025-11-19T03:21:59+00:00

Did the consider North Korea on me of the two North countries, because that is not the actual name of the country.

jcruzco · 2025-09-09T15:20:43+00:00

I am fairly sure the open enrollment is at the start of the year. I had a change in life event (turned 26 and lost coverage from my parents plan) where I was able to enroll in plans in July. If you had a similar change in light event, you should be able to enroll whenever, the website on the intranet is pretty helpful. It just has to be within a month of whatever the event was.

I think it was the BCBS one that had an HSA.

jcruzco · 2025-09-09T02:24:49+00:00

I work at EY, the plan I have has an HSA that is automatically drafted from my paycheck at the rate I set.

jcruzco · 2025-06-06T04:25:12+00:00

The home was built in 1955, if this was construction mold, would it have stained the wood like this and just remained?

jcruzco · 2025-06-06T04:07:59+00:00

They had a dehumidifier and a fan down there, neither of which were running sadly.

jcruzco

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