Bankruptcy And Reorganization Essay

557 words - 3 pages

An Involuntary petition for bankruptcy is filed by a creditor(s), when creditors take these measures; it can force a defaulter into bankruptcy. An involuntary petition may be filed in opposition to any defaulter which is competent of filing a voluntary petition under Chapter 7. Involuntary petitions contend that debtors are not current on their arrears. It is required that if the debtor attains twelve or more creditors, the petition needs to be signed by at least three creditors. Conversely, if the defaulters have less than twelve creditors, the petition may be signed by any number of creditors. The creditor(s) that engage in the signing of the petition are required to retain a legitimate unsecured claim of a minimum of ten-thousand ...view middle of the document...

In the case of Mr. Friese, even though he submitted a plan of reorganization with his creditors separated into three classes, the bankruptcy court is not able to verify his plan for reorganization. This is due to the reason that not one of the creditors voted to agree to the plan. Under Section 1129 (a) or the acceptance method, the bankruptcy court is required to verify a plan of reorganization if the following examinations are met: (Cheeseman, 2006).1.It is required that the plan is in the preeminent interest of the creditors either by undivided election of approval by the creditors, or if the creditors receive assets that is worth the amount they would receive upon insolvency.2.The plan is required to be viable.3.At least one class of claims is required to vote approval of the plan.4.Each class of claims and interests are nonimpaired (Cheeseman, 2006).Also, the unsecured creditors are being impaired as their lawful, reasonable, and contractual rights are being distorted. If Mr. Friese can not obtain the necessary votes needed to verify a plan, Mr. Friese is able to "cram down" a plan on creditors and get the plan established in spite of creditor resistance, by means of meeting particular legislative examinations. Chapter 11 is perhaps the supplest of all the chapters; however, it is the most complicated to simplify. Because of its suppleness it is normally more costly to the defaulter. Unfortunately, the rate of victorious Chapter 11 reorganizations is bleakly low, sometimes estimated at 10% or less (Bankruptcy in Brief., n.d.)References:Cheeseman, H. (2006). Contemporary Business An Online Commerce Law. Upper RiverSaddle N.J.Bankruptcy in Brief. (n.d.). Retrieved on August 15, 2007 fromhttp://www.moranlaw.net/chapter11.htm

Other Essays On Bankruptcy and Reorganization

The Importance Of The Act Of Reading” By Paulo Freire Essay

1423 words - 6 pages 4BredahlHarlie Cheyenne BredahlProfessor Peter EppsComposition II08 September 2014I"The Importance of the Act of Reading" by Paulo Freire, describes the importance of the act of reading beyond numerous experiences in his life as a child, a teenager, and an adult. Freire begins his article by taking readers back to where he was born, in his home city Recife, Brazil. He uses very itemized imagery to describe the trees, the house and the atmosphere

American Dream Essay

765 words - 4 pages The American Dream is the quintessence of a comfortable victorious life, which often includes material prosperity, a house, an improved life for one's kids, and sometimes; it means achieving any goals one may have regardless of what class he or she comes from (O'Connor, Sabato and, Yanus 19). In recent years, it has become more difficult to achieve the American Dream; this is mainly due various issues involving the relationship between the

adadwq sdadasd

504 words - 3 pages Dengan Smarty Ring, Anda bisa membaca notifikasi di handphone Anda melalui jariKetika semua orang membicarakan kecanggihan Google Glass atau smartwatch, tak banyak orang yang berpikir bahwa sesuatu yang ukurannya lebih kecil dari itu juga bisa berguna. Ide itulah yang diusung Smarty Ring, yang memperlihatkan semua notifikasi handphone Anda sehingga Anda tidak harus mengangkat handphone Anda untuk mengetahui apa yang terjadi. Smarty Ring, yang

commerce

519 words - 3 pages Related text: American History X Comment by George Moulos: You can't analyze a film the same as a book.If you re doing film you have to do film techniques, not literary techniques.-Derek Vinyard after going to prison and learning that his prejudice stemmed from ignorance he teaches his brothers Danny vineyard that his fascism and racism was wrong and ignorant.Movie Summary:Derek Vineyard begins in the movie as a troubled young man who due to his

Miniscribe Corporation

1685 words - 7 pages slow pace. During this time, consumer acceptance was also limited. The uncertainty of the industry and the shifts that occurred in the supply and demand chain has affected the operational capacity of the corporation and continued to do so. Even with a full-blown reorganization in their midst, the ever-changing industry proved to be an issue for the corporation trying at all costs to stay afloat.PROBLEM DEFINITIONAlexander and Ferris, a brokerage

dream world

384 words - 2 pages Dream worldThe warmth of the blanket upon me keeps my body safe and relaxed. My arms and legs stop trying to interact with this physical world. Peacefully, they give up and rest. My head falls further into the softness of my pillow. My eyes are closed slightly and my mind. I use my intuition to see through the world. I dream…Suddenly, the deafening noise of the alarm clock woke me up with a startling jolt. It seemed as though I had fallen

the adverb clause.ppt

754 words - 4 pages USE OF ARTICLES (a, an, the)What did these words originally mean?A/AN is an old word meaning `one'(in many European languages the ordinary word for `one' is used to translate English `a' or `an' and you can also sometimes use Cantonese `yat go' in the same way)THE is an old word meaning `this' or `that'These words no longer have their full original meaning but if you remember that meaning it can sometimes help you to decide which word you need

Highfyr

537 words - 3 pages enzyme found in pineapple. The formation of the gelatin depended on the type of Jell-O and its temperatures. Temperature is the degree of hot (high KE) and cold (low KE). Then that makes denature, the unfolding of the enzyme. At the end of all that is the enzyme that speeds up the process of protein digestion which is called protease.PURPOSE:The purpose of this project was to test if Gelatin would form with different types of pineapple inside of

merits and demerits of mordern gadgets

418 words - 2 pages "MORDERNELECTRONICGADGETS"IntroductionModern gadgets have made us complete slaves to machines. There is no work which cannot be done without the assistance of machines and there is not a single area of human activity where machines don't have to be used. No one can deny the fact that gadgets have not only simplified our lives but also made them more comfortable and luxurious. If electricity fails, life for each one of us comes to a standstill as

Case Study Dr Harold Wolf

614 words - 3 pages COMPREHENSIVE PROBLEMDr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process had yet to pass rigorous Federal Drug Administration (FDA) testing and was still in the early stages of development, but the interest was intense. He received the three offers described below this

Personal Explorations Paper

957 words - 4 pages Personal Explorations PaperLee Ashton Brooks7 December 2013PSY-110HAProfessor MooreOver the course of 7 modules, different personality aspects of mine have been tested and evaluated and have even revealed things about myself that I was not aware of. The surveys and questions that I answered dug deep into decisions and choice I make, how I think and how I feel to reveal certain characteristics about myself, some of which I was aware of and others

Similar Papers

Risk Management Essay

5224 words - 21 pages costs. The direct and indirect costs of bankruptcy are large and well known. If investors see future bankruptcy as a nontrivial possibility, then the real costs of a company reorganization or shutdown will reduce the current valuation of the firm. Thus, risk management can increase the value of a firm by reducing the probability of default.• Taxes. Risk management can help reduce taxes by reducing the volatility of earnings. Many tax systems

Ethical And Legal Obligations In Accounting

1887 words - 8 pages administers U.S. laws that provide protection for investors. The SEC was created under the Securities Exchange Act of 1934 to ensure that securities markets are fair and honest. In addition, the SEC acts as an advisor to federal courts in corporate reorganization proceedings under Chapter 11 of the Bankruptcy Reform Act of 1978. The Commission is composed of five members: a chairman and four commissioners. Commission members are appointed by the President

Polymer Mechanichemistry Essay

265 words - 2 pages Summary of Polymer MechanochemistrySometimes, curiosity gets the best of you, it did with Aj Boydston, an assistant professor at the University of Washington. Mr. Boydston and his students at the university conducted experiments, used models and imagined what would happen to the behavior of polymers when polymers undergo mechanical stress. This is a field of chemistry called polymer mechanochemistry. Creating models of star polymers on a 2-D

The Changing Essay

288 words - 2 pages One hand Reaches out And pulls a lost soul from harm While a thousand more go unspoken for They say what good have you done By saving just this one It's like whispering a prayer In the fury of a storm And I hear them saying you'll never change things And no matter what you do it's still the same thing But it's not the world that I am changing I do this so this world will know That it will not change me This heart Still believes The love and