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us as public enterprise under the Reforma Agraria also makes this option infeasible. Thus, there are five potential options that may be appropriate for the privatization of IVJ: sale of assets, joint vent-ure, liquidation, management/employee buyout, and management contract or lease. Option 1: Sale of Assets Under Option 1, CORNAP would sell the assets of IVJ as going concern to an investor group with experience in the industry. The liabilities of IVJ would remain with the Government. The responsibility for severance benefits would also remain with the government, but would partially offset employees' payment for their option to buy 2% of the State' holding in IJB. The investors would form new company, which would be set up at the time of the sale, with IVJ' assets and continue to operate the mill. As first step in this sale, CORNAP would negotiate with the workers to determine if they are interested in exercising their 2% option in specific assets. Assets purchased by employees would be set up in an employee-owned company. The remaining assets would be sold to investors as described above. The advantages of this approach are as follows: * Ownership of IVJ is transferred to private owner which eliminates the responsibility of the Government for financial losses and further capital investments. Private, experienced owners have strong incentive to improve management and operations. IVJ continues to be operated as going concern and employment is maintained, although probably at lower level. Cash is generated for the Government in the short-term. The disadvantages of Option 1 are as follows: * The Government may receive lower price if the mill is expected to continue as going concern rather than be liquidated. As noted in Section VIII, the ongoing concern value of IVJ is estimated at $9 to IX -2 $2 million while the cash liquidation value is estimated at $3 million. * Private investor interest in IVJ may not be strong give