Biohazard, Inc. $("$BI$")$ is a Cleveland, Ohio company specializing in the

manufacture of battery acid for use in automobile batteries. For years, BI has

dumped industrial chemical waste in a "waste pond" behind their plant which is

located next to their headquarters building in Cleveland. BI continued to dump

waste into the pond until yesterday because there is no other way to dispose of

this waste, which is the byproduct of BI's innovative method of manufacturing

battery acid.

BI owes Cleveland Bank $$5,000,000$ secured by the property on which BI

has its headquarters building and its manufacturing plant. The property was

appraised, as of last week, at $$4,500,000,$ and declining in value every day

because of the waste dumping.

Yesterday, the Environmental Protection Agency $("$EPA$"),$ a federal agency

with the power to take actions necessary to protect and clean up the

environment, obtained an judgment against BI$.$ The judgment called for BI to

cease and desist from dumping industrial waste into the waste pond and to clean

up the pond and restore the land to the condition it was in before BI owned the

property. BI estimates that the cleanup could cost $$5,000,000.$ Other than its

real property mentioned above, BI has approximately $$1,000,000$ in cash, and no

other assets of any value. BI has unsecured creditors who are owed $$3,000,000$

in total.

After receiving the judgment, BI filed a petition for relief under chapter $11$

of the Bankruptcy Code.

Please:

$1)$ Identify BI's creditors who may participate in BI's chapter $11$ case; $2)$ Evaluate priorities of these creditor's result; and $3)$ predict BI's chances of a successful chapter $11$ proceeding.