Navtech Inc. filed a Division 1 proposal. All the secured creditors voted to accept Navtech's proposal. There were 9 unsecured creditors that were owed a total of $1,000,000. Circuits Inc. was one of the unsecured creditors and it was owed $750,000. Circuits voted to accept Navtech's proposal but the other 8 unsecured creditors rejected the proposal. As a result
A) Navtech now is automatically bankrupt
B) Navtech can file a new Division 1 proposal
C) Navtech has avoided bankruptcy and can restructure its debt according to the terms of its proposal
D) the Trustee in bankruptcy can order Navtech to rewrite the proposal so that more unsecured creditors agree
E) Navtech can file a proposal under the CCAA instead
Correct Answer:
Verified
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