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-35- <br />88. The Applicants are facing an impending liquidity crisis as the Applicants are <br />required to pay $110,173,897 in respect of the Secured Notes and does not have the ability to <br />repay such amounts, and the Trustee is in a position to enforce the security. <br />89. The obligations owed by the Applicants in respect of the Secured Notes appears <br />to exceed the realizable value of the Cline Group at the present time. Therefore: <br />(a) the Secured Noteholders would likely suffer a significant shortfall in amounts <br />owed to them if they were to enforce their security; <br />(b) there would likely be no value left to pay the Cline Group's unsecured creditors or <br />the WARN Act Plaintiffs if the Secured Noteholders were to enforce their <br />security; and <br />(c) the existing equity interests in Cline likely have no economic value <br />90. The Monitor notes that, as a result of the circumstances facing the Applicants (as <br />more particularly described above), it appears that the Plan is the best viable, going- concern <br />alternative available to the Applicants and will provide a recovery to the largest number of the <br />Applicants stakeholders. <br />91. The Monitor is satisfied that the Applicants, its board of directors and their <br />financial and legal advisors have determined that the Plan represents the best opportunity to <br />provide a stronger foundation for the Cline Group to remain a going concern, thereby preserving <br />operations for many of its stakeholders, including the Secured Noteholders, employees, <br />customers and suppliers. <br />