In a single-wing butterfly of a company whose assets consisted of cash and cash equivalents, tenant receivables and a revenue producing rental property, the revenue-producing properties and prepaid rent were considered business property and loans receivable from certain Holdcos, which had no specified terms of repayment, were considered to be near cash assets.
After the allocation of current liabilities to cash and near cash assets, "the remaining net fair market value, if any, of any amounts receivable and prepaid expenses of Opco (other than the Prepaid Rent) will be reclassified as business property and excluded from cash or near-cash property, to the extent that such property will be collected or used in the ordinary course of the business to which such property relates" (para 66(b)).
Furthermore, "following such allocation of liabilities...it is not expected that Opco will have any cash or near cash property...."