The Steel Pony Company, a Maker of All-Terrain Recreational Vehicles

The Steel Pony Company, a maker of all-terrain recreational vehicles, is having financial difficulties due to high interest payments. The estimated "going concern" value if Steel Pony is € 4.0 million. The senior debt claim is on all fixed assets. The balance sheet of the firm is as shown:
$\begin{array} { | l | l | l | l | } \hline \text { Current Assets } & € 1,100,000 & \text { Senior Debt } & € 2,200,000 \\\hline \text { Fixed Assets } & € 2,900,000 & \text { Subordinated Debt } & € 3,200,000 \\\hline & & \text { Equityholders Equity } & € - 2,000,000 \\\hline\end{array}$
If Steel Pony decides to file for formal bankruptcy and expects to sell the firm for the "going concern" value and pay administrative fees which amounts to 5% of the total going concern value, determine the distribution of the proceeds under the rules of absolute priority.