Question
Hillary has over $1 000 000 in claims against her. She has fifteen unsecured creditors (five with claims of $50 000, five with claims of
Hillary has over $1 000 000 in claims against her. She has fifteen unsecured creditors (five with claims of $50 000, five with claims of $25 000, and five with claims of $10 000) and three secured creditors (each with $200 000 in claims). Hillary decides to file a Division I proposal rather than risk bankruptcy. She and the trustee properly file all the required documentation. At a vote, one of the secured creditors approves the proposal. Of the unsecured creditors, all the highest claim creditors and all of the lowest claim creditors approve. Can the proposal go forward?
A)Yes, but only for the unsecured creditors
B)No, because two-thirds of the secured creditors did not approve the proposal
C)Yes, because a majority of all creditors approved the proposal
D)No, because no creditor can be forced to accept a proposal he did not personally approve.
E)Yes, but only for the secured creditors
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