Asked by Derek Lewis on Apr 27, 2024
Verified
Which of the following is true regarding the number of creditors who must vote to accept a Chapter 11 reorganization plan?
A) For the plan to be accepted,one-third of the creditors of each class of creditors must vote to approve it.
B) For the plan to be accepted,one-half of the creditors of each class of creditors must vote to approve it.
C) For the plan to be accepted,two-thirds of the creditors of each class of creditors must vote to approve it.
D) For the plan to be accepted,three-fourths of the creditors of each class of creditors must vote to approve it.
E) For the plan to be accepted,one-fourth of the creditors of each class of creditors must vote to approve it.
Chapter 11
A provision under the U.S. Bankruptcy Code that allows for reorganization under the bankruptcy laws of the United States.
Reorganization Plan
A structured strategy to rearrange or restructure a company or its debts and assets in the face of financial instability, often under bankruptcy proceedings.
Creditors
Individuals or entities to whom money is owed by a debtor or borrower.
- Recognize the duties and rights of an individual in debt within the framework of bankruptcy litigation.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
C
Explanation :
Once a Chapter 11 reorganization plan has been developed,creditors must vote to accept the plan.For the plan to be accepted,two-thirds of the creditors of each class of creditors must vote to approve it.
Learning Objectives
- Recognize the duties and rights of an individual in debt within the framework of bankruptcy litigation.