Non-bankruptcy compromises to give debtors relief while protecting the rights of creditors include all of the following except:

Question

Quizplus · Accepted Answer

Mergers are not a common alternative to bankruptcy for providing relief to debtors while protecting the rights of creditors. They involve the combination of two or more companies into a single entity and are typically used for strategic purposes, such as expanding market share or achieving economies of scale. In contrast, the other options listed (nonstatutory assignments for the benefit of creditors, receiverships under the direction of a court with equity powers, and compositions) are all tools for restructuring debt and avoiding bankruptcy while still satisfying the claims of creditors.

Non-Bankruptcy Compromises to Give Debtors Relief While Protecting the Rights