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

Master and slave. an analysis

495 words - 2 pages Each of the characters in The Tempest finds themselves in bondage. However, by the end of the story, the same characters are set free from whatever enslaves them. A few characters one can see enslaved are Prospero, Miranda, Ariel, and Caliban.Prospero is in bondage to his magic. Since his exile by his brother from his dukedom in Milan, he has had but a few books to help pass the twelve long years. During this time, he becomes very proficient in

Methods Of Therapy Essay

2480 words - 10 pages METHODS OF THERAPY Therapy, from a psychologist's viewpoint, has many different meanings. It can be physical or psychological, or even both. In this paper, several different aspects of therapy will be discussed. First the word therapy will be defined more clearly, and then psychotherapy and how it differs from other interactions yet is also similar. Next therapy will be examined from the Psychodynamic, Cognitive and Humanistic-Existential points

Phineas And Gene A Comparitive

1538 words - 7 pages Phineas and Gene: A Comparative Study Throughout the story, Phineas and Gene, the two main characters, showed a number of contrasting traits. Phineas was a confident, non competitive, naive, irresponsible, and unintelligent person throughout the story, whereas Gene, Phineas' roommate, was insecure, competitive, mature, responsible, and intelligent throughout the story.Phineas had a confident nature in everything he did. As Phineas and Gene first

Mafia

2008 words - 9 pages French soldier raped a Palermo woman on her wedding day. Their slogan echoed her mother's cry, "Ma fia, Ma fia" (my daughter my daughter). There are other less "glamorous" stories as to where the word originally formed. The most likely reasoning says that it came from the Arabic word mahias, meaning bold man. The American Mafia has become infamous due to its leaders, its method of operation, and its impact on the economy through illegal means

Baseball Strike

1354 words - 6 pages GAME OVER! "I don't like it. People won't be able to come to these games anymore, and I don't like that". A sad nine - year - old fan voices his concerns on the 1994 major League Baseball strike. The '94 baseball season has come to an abrupt end. Players have ceased play because they feel they are being treated unfairly with the owner's plan to impose a salary cap. Owners are finding it difficult to come to terms with their own disagreements

Worst experience

299 words - 2 pages I wanted to lie down and cry. When I got home from the student/teacher/parent conference in fifth grade my mind was in shambles. After I had done everything possible to pass math, my fifth grade teacher was actually telling my Parents about my alleged poor effort. Poor effort? Didn't I do every homework assignment? Didn't I study every night and miss my favorite television show "Full house"? From an early age, I had been taught that grades are

Multinational Companies

2058 words - 9 pages Multinational Companies: Out for Profit Without Regard for Life                  What a company usually wants for its business is for it to be an successful establishment and to make an abundance of profit. Some businesses do not pose any concern on what they have to do to make this profit as long as it done. Multinational companies are firms with their home base in one country and operations in many other nations. (Molyeux, 133

Middle Adulthood 2

675 words - 3 pages The Dictionary of Social Work roughly defines middle adulthood as the period between forty-five and sixty-four years of age. There are four main tasks in this stage. They include meeting intimacy and family needs, satisfying achievement needs, taking care of elderly parents, and coping with end of life issues. Erikson identifies the need for achievement during midlife, which fits into his stage of generativity vs. stagnation. Success in

Political socialization

461 words - 2 pages Political Socialization There are many ways that our ideas are shaped and influenced as we grow up. This process by which we develop certain ways of thinking is called political socialization. There are three main influences which change and shape us being, the family, the mass media, and formal education.The family definitely has the greatest impact on us as we grow. This is primarily because ever since the beginning of childhood we are exposed

Procrastination and regrets

533 words - 3 pages Procrastination and Regrets It's Thursday afternoon and Jack has nothing to do except his homework. However, Jack doesn't feel like doing his homework, so he thinks to himself "I'll do my homework tomorrow night and go to a house party tonight." Ah yes, like many other young adults, Jack has resorted to procrastination. The procrastination bug, like young adults has also become abundant in parents.One thing that many young adults procrastinate

Frank o haras the day lady die

398 words - 2 pages In his poem, "The Day Lady Died", Frank O'Hara refrains from using all the conventional patterns of elegiac poetry. Instead of the common reflection of grief, utilizing tragic laments and a recount of greatness now gone, O'Hara's seemingly ordinary poem very subtly evokes a sense of loss. At first, O'Hara's poem appears to be the account of a very typical day. His classic "I do this and I do that" style, accompanied by the simplistic description

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

Persuasive Essay Gay And Lesbi

623 words - 3 pages Persuasive Essay - Gay and Lesbian Rights "If anyone says, 'I love God,' yet hates his brother, he is a liar. For anyone who does not love his brother, whom he has seen cannot love God, whom he has not seen," John 4:20. So, why do heterosexual people hate homosexuals? They are ordinary people with a different lifestyle who would simply like to be treated with respect. Many organized religions believe that a 'gay' lifestyle is wrong. But, if

Mark Mcgwire Vs Sammy Sosa Essay

1206 words - 5 pages Although a lot of people play baseball two names that come to mind are Mark McGwire and Sammy Sosa. McGwire and Sosa are very good hitters but are also so very different hitters. McGwire and Sosa are very great athletes who share apart of baseball history. McGwire and Sosa are good players but off the field they are very charitable individuals. McGwire and Sosa have many similarities and differences. IT is hard to compare Mark McGwire and