Bankruptcy Plan of Reorganization

The video tutorial explains the Chapter 11 bankruptcy process, focusing on the debtor's responsibility to propose a reorganization plan within 120 days. The plan must include mandatory provisions and is submitted to the court for approval. Creditors vote on the plan, with specific rules for secured and unsecured creditors. The court evaluates the plan's feasibility, ensuring it meets the best interest of creditors and follows priority rules. The process includes a cram down strategy to enforce the plan despite creditor objections. The court retains authority to approve the plan based on various factors, including the business's earning power and market conditions.

What is the initial time frame for a debtor in possession to propose a reorganization plan in a Chapter 11 bankruptcy case?

• 120 days

• 180 days

• 90 days

• 60 days

What must be included in the notice of the bankruptcy plan submitted to the court?

• Only financial information

• Only structural information

• Only operational information

• Operational, structural, and financial information

Which group of creditors is assumed to have accepted the plan without voting?

• All secured creditors

• All unsecured creditors

• Secured creditors paid under the plan

• Unsecured creditors receiving no payment

What is the minimum requirement for a class of unsecured impaired creditors to approve the plan?

• No class needs to approve

• All creditors must approve

• Half of the classes must approve

• At least one class must approve

What is a 'cram down' in the context of creditor voting?

• Forcing a plan on creditors who reject it

• Forcing a plan on creditors who approve it

• A plan that requires no voting

• Voluntary acceptance of a plan by all creditors

What must the court ensure about the plan in terms of creditor interest?

• Creditors receive less than in Chapter 7

• Creditors' interest is not considered

• Creditors receive the same as in Chapter 7

• Creditors receive more than in Chapter 7

Which factor is NOT considered by the court to determine the feasibility of the plan?

• Personal preferences of the debtor

• Adequacy of the capital structure

• Earning power of the business

• Economic and market conditions