Which Statement Is False Regarding the Acceptance and Confirmation of a Reorganization

question 79

Multiple Choice

Which statement is false regarding the acceptance and confirmation of a reorganization plan?

• A) The plan must be voted on by the creditors and the stockholders of the company.
• B) A separate vote is required of each class of stockholders.
• C) Any class of creditors that is not damaged by a reorganization is assumed to have accepted the plan without voting.
• D) Even if creditors and stockholders approve of the plan, the court can reject the plan.
• E) Acceptance of the plan requires the approval of two-thirds in number of claims and one-half in dollar amount of creditors that cast votes.

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