Which of the Following Is True Regarding the Number of Creditors

question 63

Multiple Choice

Which of the following is true regarding the number of creditors who must vote to accept a reorganization plan under a Chapter 11 proceeding?

• 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-fourth 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.

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Definitions:

Industry

The collection of businesses and activities involved in the manufacturing, production, or provision of goods and services in a particular sector.

Firm(s)

Businesses or corporations established to perform economic activities, such as producing goods or offering services to consumers.

Dango

A Japanese term referring to informal gatherings or consortia where companies collude, often used in the context of bid-rigging.

Covert Collusion

A secret agreement between companies to engage in practices like price-fixing or market sharing, which are typically illegal and aim to reduce competition.