A distressed startup pharmaceutical company in Chapter 11 owes its lenders $500 million in debt. The firm became financially distressed because it spent much more cash than was expected developing a new drug. This drug (the firms only product) allows college students to forego sleep for several days (with no side effects) so that they can spend more time studying for their exams in a series of all-nighters just before the test. The drug, having now been approved by the relevant authorities, is ready for production and sale. The firms investment bankers estimate that annual FCF from the commercialization of the drug, should be approximately $25 million per year (starting one year from now, with an annual growth in FCF of about 2% thereafter). Similar firms have a cost of total capital of 8% per year. Alternatively, it is also estimated that the patent rights for this sensational drug could be sold to other pharma companies for about $600 million net of transactions and liquidation costs. a) this company will enter Chapter 7 b) this company will emerge from Chapter 11 (after having gotten approval for its POR) and resume its normal operations