Falcon Gypsum Ltd. is in the business of manufacturing wallboard, largely for the U.S. housing market, which has been growing for many years. In recent months, several developments have caused Falcon management to become concerned. The U.S. housing industry has slowed considerably. This has caused wallboard prices to fall sharply. In addition, the Canadian dollar has risen in relation to the U.S. dollar, making Canadian manufacturers such as Falcon less competitive in export sales. Falcon currently employs 40 workers. The company owes about $32 million to 90 different creditors. The major creditors are the bank and the provincial government, who hold secured loans. Management’s strategy is to attempt to wait out the current adverse conditions and hopefully return to prosperity. In order to do that, Falcon needs some breathing room from creditors and some additional bridge financing. What advice would you give to Falcon management? Should they seek bankruptcy protection? Are creditors likely to agree to a proposal?