All of the following are conditions most favorable for reaching settlement outside of bankruptcy court except for
A) The debtor firm is willing to share all necessary information with its creditors
B) Creditors have confidence in the debtor firm's management.
C) The debtor firm has relatively few creditors.
D) The debtor firm has many creditors.
E) The period of economic distress afflicting the firm is expected to be short-lived.

Question

Quizplus · Accepted Answer

Having many creditors complicates the process of reaching a settlement outside of bankruptcy court because it can be difficult to get all creditors to agree on the terms of the settlement. Fewer creditors typically make it easier to negotiate and reach an agreement.

All of the Following Are Conditions Most Favorable for Reaching