Like we saw in question one, debtors often need to retain assets to stay in business through the Chapter 11 process. Obviously, it is in the best interests of the business debtor to retain assets necessary to its operation; what benefits does the creditor receive for allowing the debtor to retain its secured assets?

ABC Corporation has a $1 million machine used for manufacturing widgets. ABC has filed for bankruptcy, and Maximum Machines wants either the value of the machine or the machine returned. Returning the machine will result in ABC having to close its facilities.

Based on the above information, answer the following questions:

• What can be done to prevent Maximum Machines from taking back its machine?
• How does this protect the creditor as well as the debtor?