If an Out-Of-Court Settlement Cannot Be Reached,the Reorganization Alternative Can

question 83

Multiple Choice

If an out-of-court settlement cannot be reached,the reorganization alternative can be examined.Under this alternative,:

• A) capital structure is redesigned by replacing equity accounts with debt.
• B) a creditor committee may run the business.
• C) creditors may accept a fraction of their original loans.
• D) a merger partner may be found for the firm.