Which of the Following Is Not True of a Company

question 2

Multiple Choice

Which of the following is not true of a company operating as a "debtor-in-possession' after a chapter 11 reorganization plan is approved by the bankruptcy court?

• A)​Provisions are binding on all creditors and security holders, whether or not they accepted the plan.
• B)​Property is vested in the debtor company is free of all claims, except as stipulated under the plan.
• C)​If the reorganization is not accomplishing its objective, a request for modification or conversion to a chapter 7 liquidation may be submitted to the court.
• D)​If the plan contained the provision to pay accounts payable at $.50 on $1.00, and the company's cash flow is better than expected, the amount paid could be increased.