purchased an extra $25 million in claims at better prices that had the effect of slightly reducing its cost basis from 57 percent to 52.51 percent of claim. Under the plan, notes would recover 14.4 percent of claim, and trade 9.7 percent of claim. On account of its claims, the Fund would recover $21,923,231 or 1,676,047 shares valued at $13.08 per share, compared to a cost basis per share of $55.80. Key in reducing the Fund’s cost basis was its participation, together with ESL Investments, Inc., in the investment agreement with the debtor. Pursuant to this agreement, the Fund purchased 3,050,000 shares at $10 per share, thus reducing the Fund’s cost basis per share to $26.24, less than half its original cost basis. Two years after emerging from Chapter 11 (three years after the original investment), the reorganized debtor’s shares were trading in the public markets at $100 per share or roughly a 56 percent annual IRR over the period. One year after emerging, the shares traded in the public market at $40 per share or a 26 percent IRR. (Location 3925)