Marvelous Computers, Inc. currently owes its creditors $120. It is run by an entrepreneur, Mr. Bill Doors, who could manage the firm for one period at a personal cost of $5. Mr. Doors has a unique ability to manage Marvelous Computers; under his stewardship the firm’s assets one period from now will be worth $125 with probability 0.9 and $100 with probability 0.1. Under any other management, the firm will be worth $90 for sure, which is its current liquidation value. Assume that the riskless rate is zero and that there is universal risk neutrality. Analyze the possible strategies for the creditors.