Recovering the debtor possibly with the aid a key

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Unformatted text preview: st chance of recovering part of their investment. recovering • The debtor, possibly with the aid a key creditor, The arranges a meeting between itself & all creditors. arranges • At the meeting, a committee of creditors is At selected to investigate and analyze the debtor’s situation & recommend a plan of action. situation # Voluntary Settlements to Sustain The Firm 1. Extension : An arrangement whereby the 1. firm’s creditors receive payment in full, although not immediately. although 2. Composition : A pro rata cash settlement 2. of creditor claims by the debtor firm; a uniform percentage of each dollar owed is paid. paid. 3. Creditor Control : An arrangement in 3. which the creditor committee replaces the firm’s operating management and operates the until all claims have been settled. # Voluntary Settlements Resulting in Liquidation A Voluntary liquidation procedure by which a firm’s Voluntary creditor pass the power to liquidate the firm’s assets to an adjustment burea...
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