Techtel Corp.has $25 million in secured debt and $10 million in unsecured debt.After a series of quarterly losses,the company files for Chapter 11 bankruptcy.Techtel proposes a plan of reorganization,which discharges about 60 percent of its unsecured debt.Which of the following would happen upon the bankruptcy court's approval of the proposed plan of reorganization?

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The proposed plan of reorganization discharges 60 percent of Techtel's unsecured debt. Therefore, upon the bankruptcy court's approval, Techtel will be liable to pay 40 percent of its unsecured debt on a pro-rata basis. There is no indication in the scenario that Techtel will discharge any of its secured debt or propose a new plan of payment. Therefore, options A, C, and D are incorrect.