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 BIs 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.