When a class of creditors does not approve of a plan of reorganization under Chapter 11,the court can order the plan into effect:

Question

Quizplus · Accepted Answer

The court can order the plan into effect using the cram down method, which allows the court to approve a plan even if one or more classes of creditors do not consent, as long as the plan is fair and equitable and does not discriminate unfairly against any class of creditors. The court can modify the plan to meet these requirements and then confirm it. Therefore, choice C is the correct answer. The equity method and secured creditor's method do not apply in this situation, and modifying the plan to obtain the consent of all classes of creditors is not always necessary or possible.

When a Class of Creditors Does Not Approve of a Plan