Assignee reorganization liquidation in bankruptcy

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Unformatted text preview: u, a trade association or a third party, which is designated the assignee. assignee. Reorganization & Liquidation in Bankruptcy Reorganization Bankruptcy Legislation: Bankruptcy is a legal sense occurs when the firm cannot pay its bills or when its liabilities exceed the fair market value of its assets. its Reorganization in Bankruptcy : • Voluntary reorganization : A petition filed by a faced firm on its own behalf for reorganizing its structure and paying its creditors. creditors. • Involuntary reorganization : A petition initiated by an outside party, usually a creditor, for the reorganization & payment creditors f a failed firm. creditors # Procedures a. Filing –Bankruptcy court b.Appointment : Debtor in Possession b.Appointment (DIP)---Objection -- Trustee (DIP)---Objection c. Reorganization Plan d.Acceptance of Reorganization Plan e.Payment of Expenses Role of The Debtor in Possession (DIP) • Reorganizations activities are largely in the hands Reorganizations of the Debtor in Possession (DIP). of • The Debtor in Possession (DIP)’s first The respons...
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