Type H Thermal capacities n rpm Flender B2-VH17A Bevel-helical speed reducer B2

Flender/Flender Gear Units/Bevel-helical speed reducer B2

lue is generally considered the minimum acceptable value of an enterprise. However, an enterprise may be sold as going concern for less than the liquidation value due to employment objectives, anticipated future tax revenues, and other considerations. The liquidation value of IVJ' assets is estimated at approximately 1 million (US $3 million), based on asset lists provided by IVJ management, the experience of industry experts, and local asset valuation specialists. This estimate should not be considered definitive value, but rather reasonable approximation of liquidation value. In addition, this estimate does not reflect tie time and transactions costs that would be required to carry out an orderly liquidation of the mills' equipment, nor the likelihood that some equipment could not be sold given currently low world sugar prices and the low level of new investment in the industry. 3. Conclusions primary Government objective of privatization is for IVJ to continue as going concern. Thus, reasonable range for the value of IVJ is the going concern value of 4 to 1 million ($9 to $2 million). These estimated values are based on numerous assumptions and are particularly sensitive to variations in the discount rate, average sugar price, and sale price of electricity. . Recommended Privatization Strategy 1. Government Objectives The principal objectives of CORNAP in privatizing IVJ are as follows: Reduce or eliminate government financial losses resulting from the negative cash flow of the mill and future government investment. Transfer ownership of the mill as quickly as possible. Improve management and operations of the mill. Maintain employment at the mill. * Maximize the cash generated from the sale of IVJ. iv 0 2. Privatization Options PW/IPG has identified four potential options that may be appropriate for the privatization of Victoria de Julio: * OPTION 1: SALE OF ENTERPRISE ASSETS CORNAP would sell the assets of IVJ as going conce