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2) A firm in financial distress that reorganizes through the bankruptcy process: i) will continue to operate as a going concern throughout the entire process.
2) A firm in financial distress that reorganizes through the bankruptcy process:
i) will continue to operate as a going concern throughout the entire process.
ii) must only have the reorganization plan approved by its primary creditor.
iii) cannot issue new securities to either creditors or shareholders.
iv) must file a reorganization plan within 90 days of filing the bankruptcy petition.
v) must abide by the Section 363 provisions of Chapter 11.
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