Question
Which of the following is not true of a company operating as a debtor-in-possession after a chapter 11 reorganization plan is approved by the bankruptcy
Which of the following is not true of a company operating as a debtor-in-possession after a chapter 11 reorganization plan is approved by the bankruptcy court?
a. Provisions are binding on all creditors and security holders, whether or not they accepted the plan.
b. Property is vested in the debtor company is free of all claims, except as stipulated under the plan.
c. If the reorganization is not accomplishing its objective, a request for modification or conversion to a chapter 7 liquidation may be submitted to the court.
d. If the plan contained the provision to pay accounts payable at $.50 on $1.00, and the companys cash flow is better than expected, the amount paid could be increased.
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