The Chapter 11 Filing Self-Quiz

 

 

 

 

 

 

 

Cargo Corp. has applied for Chapter 11 bankruptcy protection. In its filing, management failed to present a plan for handling the reorganization of the firm. At this stage, how long will it be before creditors can provide their own plan?
Choice 1 No time, as management’s failure to present a plan gives creditors the right to present their own.
Choice 2 60 days.
Choice 3 120 days.
Choice 4 180 days.
Argon Inc. has filed for bankruptcy protection under Chapter 11. Which of the following represents a potential creditors’ committee?
Choice 1 Bond holders’ committee.
Choice 2 Employees’ committee
Choice 3 Suppliers’ committee
Choice 4 All of the above.
A ?work-out? is:
Choice 1 A shareholder-adopted plan for the reorganization of a company preparing a Chapter 11 filing.
Choice 2 A management-adopted plan for the reorganization of a company outside of bankruptcy.
Choice 3 A creditor-adopted plan for the reorganization of a company within the Chapter 11 process.
Choice 4 A creditor-adopted plan for the reorganization of a company outside of bankruptcy.
Y Co. is having some mild-to-serious financial difficulty. However, it has decided to voluntarily enter Chapter 11 bankruptcy. What is one of the primary reasons why the firm may have chosen to do so?
Choice 1 To solve its financial problems before they become too serious.
Choice 2 To rearrange any collective bargaining contracts that it has.
Choice 3 To keep its creditors happy before they force the firm to file for Chapter 7 bankruptcy.
Choice 4 To keep its suppliers happy before they force the firm to file for Chapter 7 bankruptcy.
SmallTime, Inc. is a corporation with $1 million in assets, mostly in real estate. What bankruptcy filing would likely be the best for the firm?
Choice 1 A Chapter 11 “short-cut” filing.
Choice 2 A Chapter 11 full filing, if the firm expects to have no assets after it files.
Choice 3 A Chapter 7 liquidation, if it expects to have no assets after it files.
Choice 4 A Chapter 13 filing, if it expects to have no assets after it files.

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