Cumberland - 5 In the event of bankruptcy i ts business and...

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5. In the event of bankruptcy, its business and prospects will be affected in many ways. There are many benefits along with a few disadvantages leaving the question of how effective chapter 11 will be in the air. An activation of an automatic stay of foreclosures and other remedies normally available to creditors would immediately be in effect. This would allow Cumberland and Cross River to suspend all payments on pre-petition debt during the proceeding. Also Cross River would be able to raise enough financing to start paying off debt. Management and board of directors would be DIP, during post-petition financing would run Cumberland and Cross River on a day-to-day basis. They have up to 120 days to plan reorganization. As a bank lender during the bankruptcy I’d expect Cumberland and Cross River to come up with a post-petition financing plan to receive timely interest and principal payments during the bankruptcy. As Sam Adams during the bankruptcy I’d expect the situation to be pushed to the
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This note was uploaded on 06/29/2011 for the course FIN 322 taught by Professor Zhu during the Spring '11 term at Oakland University.

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Cumberland - 5 In the event of bankruptcy i ts business and...

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