165(g) does not define "worthless," courts have determined when stock is worthless under various standards relating to the value of a company In Bilthouse, the Seventh Circuit stated that whether stock was worthless is a facts-and-circumstances inquiry and that most courts look at both the liquidating value
and the potential value in making the determination.
, has a potential value and can not be said
165(g), its current liquidating value
provides only an indication.
Further, the council proposed the DIC pay back a certain proportion of deposits exceeding 10 million yen, depending on the circumstances, before the liquidating value
of failed lenders is determined.
where PREFST is defined as the liquidating value
of a firm's preferred stock, VCOMS is the price of the firm's common stock multiplied by the number of shares outstanding at the close of the year (December 31), LTDEBT is the value of the firm's long-term debt adjusted for its age structure, STDEBT is the book value of the firm's current liabilities, ADJ is the value of the firm's net short-term assets, TOTASST is the book value of the firm's total assets, BKCAP is the book value of the firm's net capital stock, and NETCAP is the firm's inflation-adjusted net capital stock.