Pipe Corporation is very interested in acquiring all of Ore Corporation. It currently owns 30%, which it purchased 6 years ago for $250,000. Pipe is a manufacturer of plumbing pipes with assets valued at $3 million and liabilities of $1 million. Ore supplies Pipe with copper from its mines that are valued at $4 million with $3 million in mortgages. Pipe has negotiated a restructuring with Ore's management. Pipe is concerned about potential environmental issues from the strip mining used by Ore and feels it needs liability protection. Given these facts, what type of reorganization would you suggest for Pipe and Ore?

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The Answer of Pipe Corporation is very interested in acquiring all of Ore Corporation. It currently owns 30%, which it purchased 6 years ago for $250,000. Pipe is a manufacturer of plumbing pipes with assets valued at $3 million and liabilities of $1 million. Ore supplies Pipe with copper from its mines that are valued at $4 million with $3 million in mortgages. Pipe has negotiated a restructuring with Ore's management. Pipe is concerned about potential environmental issues from the strip mining used by Ore and feels it needs liability protection. Given these facts, what type of reorganization would you suggest for Pipe and Ore?

Pipe Corporation Is Very Interested in Acquiring All of Ore